Kansas City will no longer work with CJR Construction Group after it found the contractor failed to properly pay its employees on three different projects.
This process, called debarment, means the company cannot work on city-funded projects or any development that receives tax abatements in the city for two years.
The city found that the Raytown-based contractor failed to properly pay five employees on its Jazz Hill Homes construction project. That project received a 25-year property tax abatement and a sales tax exemption on construction materials. The city recovered more than $36,000 in workers' compensation and $17,000 in penalties, according to documents obtained by KCUR.
The city’s debarment process is in the code of ordinances but hasn't been enforced in over a decade.
Kansas City Council member Kevin O’Neill has long been a supporter of unions and fair pay in the trades. He said the decision to debar a company is about protecting workers and public investments.
“We are watching these job sites,” O’Neill said. “If you are doing something illegal, we're going to find it and we have the potential to debar you from working on any city contracts for the next two years as we did CJR. We're going to continue to fight bad job sites.”
O’Neill said Kansas City will remain focused on investigating city construction projects to prevent wage theft. Missouri law and the city’s code require contractors to pay fair, prevailing wages on development projects that get financial support from the city.
The prevailing wage is a minimum pay rate for workers on projects that cost more than $75,000 and any project that receives tax abatements or funding from the city.
Investigators for the city also found that CJR didn’t pay prevailing wage to 14 workers on the Three Light Luxury Apartments project and underpaid a worker at the One Nine Vine development. CJR also misclassified the work of an apprentice on the Jazz Hill Homes project and inaccurately certified payroll documents, the city said. All three projects received significant tax abatements from Kansas City.
CJR’s website says the company “built a business based on honesty, respect, integrity and hard work.” A representative for the company could not be reached for comment.
The city found no issues on CJR’s projects prior to 2023, but the company was under investigation by the U.S. Department of Labor, according to emails obtained by KCUR. In 2021, CJR was investigated by the federal Occupational Safety and Health Administration for safety concerns at a site in Independence.
The city monitored more than 700 projects for prevailing wage and workforce compliance in fiscal year 2025.
The city is also investigating possible violations at two other projects it incentivized.
It said Cordish Cos.’ Saxon at Midland development violated the rights of 19 employees. The city is seeking more than $460,000 in restitution and $275,000 in penalties.
That affordable apartment project was the result of a deal between Cordish and the city to renovate that building in return for multiple incentives, including the 25-year property tax abatement on its luxury Three Light apartment project.
The city also said it found violations at Lux Living’s Wonderland at 1923 development. Lux has been sued by multiple companies for unpaid liens on the project. The city found the project violated the rights of four employees and will collect about $5,200 in restitution and $400 in penalties.
