Glenn O. Hawbaker Inc. not exempt from facing potential civil penalties, PA court says
A statewide appeals court upheld a Centre County judge’s ruling Wednesday, allowing construction contractor Glenn O. Hawbaker Inc. to face administrative consequences in addition to the massive theft case that cost the business more than $20 million.
A unanimous three-judge panel of the state Superior Court affirmed Centre County Judge Julia Rater’s ruling from January 2024. The major highway and bridge contractor argued its plea agreement with the state attorney general’s office protected the company from civil liability, but that argument was rejected Wednesday for a second time.
“That would be quite a bargain,” Rater wrote in an April defense of her ruling. “In essence, GOH would have shielded itself from liability for past actions and future actions that it chooses to take with respect to their prevailing wage practices, unless the Corporate Monitor — and only the Corporate Monitor — says otherwise. This is not a bargain that this Court feels was made, and it is not supported by the language of the Plea Agreement or Sentencing Order.”
The agreement includes a guarantee that neither the company nor its executives would face further criminal charges for conduct before August 2021, state Superior Court Judge Mary Jane Bowes wrote in the 18-page ruling.
It does not, however, include language that exempts the company from facing potential administrative penalties. Judges must presume those involved in legal documents — including plea agreements — chose their words carefully, Bowes wrote.
“Ultimately, if civil agency action and debarment were to be precluded along with additional criminal charges, and that was the main impetus for GOH agreeing to the plea bargain, it is only reasonable to presume that such a promise would have been explicitly enumerated,” Bowes wrote.
A spokesperson for state Attorney General Dave Sunday’s office told the Centre Daily Times the agency was “pleased that the court has ruled that GOH is accountable to administrative agencies.”
In court filings, a state prosecutor argued Hawbaker sought the “benefit of a bargain it simply did not make.”
“It is a blatant attempt by Hawbaker to avoid the consequences of its actions — consequences it was well aware were likely,” Deputy Attorney General Philip M. McCarthy wrote in January 2024.
It’s unclear if Hawbaker plans to appeal the ruling. A message left Wednesday with the company’s attorney was not returned.
The decision marked the latest setback for the company, which has seen several legal rulings go against it in the sprawling aftermath of the criminal charges. In addition to paying $20.6 million in stolen wages to more than 1,000 workers, a federal appeals court found in October that Hawbaker’s insurance company is not responsible for providing coverage against pending class-action lawsuits.
Central to the state Superior Court’s ruling were administrative sanctions being pursued by the state Department of Labor and Industry, as well as the state Department of Transportation.
The Department of Labor and Industry had at one point been looking into whether Hawbaker violated the state’s prevailing wage law since January 2019. The agency suggested two top executives could face individual liability for the alleged violations.
PennDOT, meanwhile, was pursuing a three-year suspension and debarment from Hawbaker’s status as a pre-qualified contractor, a sanction that would prohibit state agencies from awarding contracts to the company.
Hawbaker booked $1.7 billion in state transportation construction contracts between 2003-18.
“PennDOT’s partnership with the construction industry is critical to delivering a better, safer transportation system and we must continue ensuring that all contractors follow the same rules,” the agency said in a November 2023 statement after the state Supreme Court ruled in its favor. “This is a good day for Pennsylvania and continues this Administration’s track record of championing workers’ rights and opportunities, while ensuring a level playing field in procurement.”
The status of those proceedings is unclear. Messages left Wednesday with both agencies were not returned. A PennDOT spokeswoman told the CDT in July that litigation was ongoing.
When he was the state’s top prosecutor, now-Gov. Josh Shapiro said the criminal case against Hawbaker was the largest case of its kind nationally.
The attorney general’s office said Hawbaker stole millions of dollars and other benefits from workers to pad its profits, undercut competitors and pay for internal projects and company bonuses. The company pleaded no contest to four felony counts of theft.
The plea meant the company accepted the conviction and punishment, but did not admit guilt. Since no contest plea agreements do not establish criminal liability, they can help defendants fight against lawsuits or civil penalties.
Hawbaker said it immediately changed its prevailing wage practices after learning of the investigation.
With more than 1,000 employees, Hawbaker is one of the largest employers in Centre County. Among its peers, however, the company is not alone in staring down drastic changes this decade.
Penn State is looking to close some of its smallest commonwealth campuses and Shapiro’s administration proposed the closure of Rockview state prison.
This story was originally published March 6, 2025 at 11:22 AM.