[2][3] Donovan was employed as a laborer responsible for unpacking Ballantine beer trucks,[3] and became part of the electrical workers union.

[2] His implementation of Reagan's conservative business agenda – of free enterprise with limited regulation from the government – was seen by them as reducing protections in the workplace and rolling back the hard-fought improvements they had achieved under the previous Carter administration.

[2][3] In a highly publicized case,[5] Donovan and six other defendants were indicted by a Bronx County, New York, grand jury for larceny and fraud in connection with a project to construct a new line extension for the New York City Subway, through a scheme involving a Genovese crime family associate and a minority-owned subcontractor.

[6] Schiavone Construction was required by its contract with the NYCTA to subcontract part of the work to a minority-owned enterprise.

This was over allegations that he had ties to individuals in organized crime and claims that he was present when a union leader received an illegal payoff.

[2] Donovan held 50% ownership in Schiavone Construction until its late 2007 sale to Spanish conglomerate, Grupo ACS.