The city says a political donor who won millions of dollars in municipal contracts for demolition and stucco work shortchanged more than 30 workers beginning in 2004.

The LP Group 2 Inc., which won 10 contracts worth $3.7 million for city demolition work, did not pay its workers the prevailing wage - mandated pay that approximates union rates in the building trades, the city said.

The company's owner, Garnett Littlepage, says he trains and finds work for ex-offenders and the unemployed. He said the LP Group was exempt because the city makes exceptions for training programs on small projects.

The city's Labor Standards Unit cited the company, saying it owes workers $285,000.

LP Group is appealing the decision to a review board. Through an affiliated nonprofit, Littlepage also is suing the city in federal court, alleging unfair treatment.

Littlepage has given tens of thousands of dollars to political candidates in the last five years. The biggest recipients have been Gov. Ed Rendell, who got $60,200, and Mayor John F. Street, who got $53,250.