AUSTIN, TX—The Austin-based Workers Defense Project says that it has evidence that the developer of a downtown JW Marriott project is violating its $3.8 million incentive agreement with the city by paying some construction workers less than the prevailing wage.

White Lodging, the hotel developer, quickly replied that it is following the city's directions, according to a report in the Austin American Statesman. The company cited an August 2011 email from a former high-level city official who gave an okay to White Lodging's plan to pay most workers above prevailing wages, but some below it.

On Wednesday, labor advocates and political activists gathered to call on the city to make White Lodging pay all of its employees prevailing wages, which the company says could add millions to the cost of the project.

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David Phillips

David Phillips is a Chicago-based freelance writer and consultant with more than 20 years experience in business and community news. He also has extensive reporting experience in the food manufacturing industry for national trade publications.