Comptroller Scott M. Stringer Settles Prevailing Wage Dispute For More Than $435,000

Posted by National Alliance for Fair Contracting on

New York, NY – New York City Comptroller Scott M. Stringer announced an agreement this week between National Insulation & GC, Corp. and the Office of the New York City Comptroller, Bureau of Labor Law, in which the company admitted to willfully and knowingly failing to pay two employees a prevailing wage for contracted work with the Department of Education (DOE). National Insulation will pay a fine of $435,666.72, including more than $39,000 in civil penalties to the City, as a result of the settlement.

“We have found that all too often, employees are fleeced out of money to which they’re entitled by unscrupulous contractors looking to cut corners,” Stringer said. “These employees worked hard for their salaries and they deserve to get every cent that’s rightfully owed to them.  My office will continue to pursue these bad actors that fail to provide a legal wage.”

The two employees, Francisco Ayala and Angel Ribadeneira, were hired by National Insulation to perform insulation work at New York City public schools between December 2006 and November 2010. An investigation by the Comptroller’s office into National Insulation, prompted by a DOE referral and evidence provided, revealed allegations of under reporting hours, misclassification of workers, and use of “ghost workers” on sites.

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San Diego Becomes Largest US City to Pass Minimum Wage Hike and Earned Sick Days Policy

Posted by National Alliance for Fair Contracting on

Supporters of a hike in local minimum wages left nothing to chance yesterday as a city council decision on a proposal by Todd Gloria neared. Over 400 hundred people showed up at city hall for a 6pm hearing, filling the council chambers and two overflow rooms. Many wore pink signs indicating their support.

Email and social media reminders abounded during the day, including a mid-day Raise Up San Diego-led “Twitterstorm.” More than 100 people testified before the council. Highlights included former basketball star Bill Walton standing up in favor of the measure and United Foodservice and Commercial Workers’ Mickey Kasparian giving an impassioned speech.

In the end, the City Council did the right thing, voting 6-3 to enact by ordinance a minimum wage hike, with raises in three stages effective January, 2015. This means the measure will not be placed before the voters in November.

Additional increases will come in successive years, topping out at $11.50 in January, 2017. Starting in January 2019, further hikes will be tied to the consumer price index.

The measure as passed awards full time employees up to five days a year in earned paid sick leave; part-time workers will earn prorated sick leave based on the number of hours they work.

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States That Raised Minimum Wage See Faster Job Growth, Report Says

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New data released by the Department of Labor suggests that raising the minimum wage in some states might have spurred job growth, contrary to what critics said would happen.

In a report on Friday, the 13 states that raised their minimum wages on Jan. 1 have added jobs at a faster pace than those that did not. The data run counter to a Congressional Budget Office report in February that said raising the minimum wage to $10.10 an hour, as the White House supports, would cost 500,000 jobs.

The Associated Press writes:

“In the 13 states that boosted their minimums at the beginning of the year, the number of jobs grew an average of 0.85 percent from January through June. The average for the other 37 states was 0.61 percent. Nine of the 13 states increased their minimum wages automatically in line with inflation: Arizona, Colorado, Florida, Missouri, Montana, Ohio, Oregon, Vermont and Washington. Four more states – Connecticut, New Jersey, New York and Rhode Island – approved legislation mandating the increases.”

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More than $1.6M in Unpaid Overtime for 1,543 Workers in the Gulf Coast Recovered by US Labor Department

Posted by National Alliance for Fair Contracting on

HOUMA, La. – B & D Contracting Inc., a labor recruiting and staffing agency that caters to oil field services and maritime fabrication facilities along the Gulf Coast, has agreed to pay $1,660,438 in back wages to 1,543 current and former employees. An investigation by the U.S. Department of Labor found that the company engaged in improper pay and record-keeping practices that resulted in employees being denied overtime compensation in violation of the Fair Labor Standards Act. The employees were assigned to client work sites throughout Louisiana, Mississippi and Alabama to work as welders, pipe fitters and shipfitters.

Investigators from the Wage and Hour Division’s New Orleans District Office found the company mischaracterized certain wages as per diem payments and impermissibly excluded these wages when calculating overtime premiums, denying employees earned overtime compensation.

“Temporary staffing agencies serve valuable and legitimate business needs in today’s economy,” said Dr. David Weil, administrator for the Wage and Hour Division, “But employers may not manipulate these arrangements and use evasive pay practices to avoid paying workers their rightful wages.”

“The labor violations we found in this case are not unique to B & D Contracting Inc.,” said Cynthia Watson, regional administrator for the division in the Southwest. “We are increasingly finding the use of per diem schemes as a means of decreasing overtime pay and tax obligations in the staffing and support services industry in this region. The resolution of this case demonstrates our continued focus on combating such labor violations in order to improve compliance in this industry.”

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Taking a Bigger Bite out of Wage Theft in the Garden State

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Two central New Jersey towns are attempting to crack down on employers who illegally withhold wages from workers — tying local business licenses to compliance with state wage laws.

The new rules, adopted by New Brunswick in December and Princeton on Monday, give the towns the ability to refuse to renew the license of businesses that have been found guilty either in court or by the state Department of Labor of wage theft — not paying for all hours worked, not paying at least the minimum wage, or not paying overtime.

Activists who helped craft the local ordinances say they could be a model for other communities and are reaching out to expand the wage-theft provisions to other towns. They also hope the local efforts can spur action on a state bill — A1317 — that would make it easier for workers to file wage-theft claims and would increase penalties on those convicted of wage theft.

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Virginia Is for Compliers: State Can Now More Easily Pursue Misclassification, Subcontracting Violators

Posted by National Alliance for Fair Contracting on

Virginia’s penalties for misclassifying workers in order to avoid paying insurance costs got a boost this month thanks to a new law.  The Virginia Workers Compensation Act made it easier for the state to take action against violators, according to Virginia Workplace Law:

The civil penalty is now up to $250 per day for each day of noncompliance, subject to a maximum penalty of $50,000, plus collection costs.”  The VWCA requires every business owner with more than two employees (a part-time worker is counted as one employee) to have coverage for such worker.

Language in the law will curtail unscrupulous employers from rebranding their employees as independent contractors, the Workers Compensation Commission said:

“Employers should also be aware, designating a worker as an ‘independent contractor’ does not necessarily mean they are not an employee.  Workers’ compensation looks to whether the business exerts control over the manner and means of how the work is performed. In the event of a claim, the facts of the work circumstances will determine if the individual is covered for workers’ compensation, regardless of payment on a 1099 designation.”

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16th Annual NAFC Conference – September is Fast Approaching, Register Today!

Posted by National Alliance for Fair Contracting on

 

The National Alliance for Fair Contracting will be holding its 16th Annual Conference this year in the lakeside city of Chicago, IL, September 17-19, 2014.

The NAFC Conference provides a national forum for those committed to combating noncompliance of state and federal public contracting laws and draws attendance from contractors, labor unions, fair contracting organizations, attorneys and various officials from local, state and federal governments around the nation.
This year’s conference will be hosted at the Sheraton Chicago Hotel and Towers. NAFC Chairman Rocco Davis and the rest of NAFC’s Board of Directors are diligently planning content and speakers to ensure this will be our most successful conference to date.

 Register Now

September 17-19, 2014

Wednesday (September 17)

02:00pm – 05:00pm – Registration

Thursday (September 18)

07:00am – 08:00am – Breakfast

07:00am – 10:00am – Registration

08:00am – 10:30am – Plenary Session

10:30am – 12:00pm – Workshops

12:00pm – 01:00pm – Lunch

01:00pm – 03:00pm – Workshops

3:00pm – 5:00pm – Plenary Session

05:30pm – 06:30pm – NAFC General Reception

 Friday (September 19)

07:00am – 08:00am – Breakfast

08:00am – 10:00am – Plenary Session

10:00am – 12:00pm – Workshops

12:00pm – Adjournment

** Please note that the agenda is subject to change.

The CCW is Common Sense Construction

Posted by National Alliance for Fair Contracting on

Today, the Midwest Economic Policy Institute released Common Sense Construction: The Economic Impacts of  Indiana’s Common Construction Wage with the University of Illinois School of Labor and Employment Relations and Smart Cities Prevail. The report finds that Indiana’s Common Construction Wage (CCW) promotes positive labor market outcomes for both construction workers and contractors.

Ten facts about the Indiana CCW:

1. The Common Construction Wage keeps Hoosier jobs local. (For more, see pages 5 and 11-13)

2. The Common Construction Wage does not increase total construction costs for public projects. (Pg. 4)

3. The Common Construction Wage promotes an upwardly-mobile, high-road economy for working families. (Pg. 5-8)

4. The Common Construction Wage supports almost 2,000 non-construction jobs and nearly $250 million in total worker income throughout the state. (Pg. 13-14)

5. The Common Construction Wage boosts the Indiana economy by about $700 million. (Pg. 13)

6. The Common Construction Wage increases tax revenues for all levels of government. (Pg. 15)

7. The Common Construction Wage fosters safer workplaces for Indiana construction workers. (Pg. 15-16)

8. The Common Construction Wage increases the benefits package paid to workers by around 20 percent. (Pg. 17)

9. The Common Construction Wage produces a highly-skilled, highly-productive workforce. (Pg. 18-19)

10. The Common Construction Wage does not favor union contractors over nonunion contractors. (Pg. 19-21)

(Copy of Report)

YouTube Video: Common Construction Wage Works!

Anti-Prevailing Wage Lawsuit is a Waste of Money for El Centro

Posted by National Alliance for Fair Contracting on

At a time when the City of El Centro is experiencing the second highest unemployment rate of any city in the nation, it is astounding that leaders there are wasting tax dollars and time by joining a lawsuit against a new state law designed to create more middle class jobs for construction workers across California.

The new law, Senate Bill 7 does not require cities to pay prevailing wages, but it does provide incentives to cities that choose to pay prevailing wages on projects that are locally funded.  SB7 gives access to state funding and financing if they will comply with prevailing wage agreements already in place for all state and federally funded projects on locally funded projects.

State and federal governments already require the payment of prevailing wage, because for over 80 years, prevailing wage laws have ensured that taxpayer dollars go to fund projects that are completed by the best trained workers available for the best value possible; more often than not, these projects are completed on time and on budget.  For years, out of state lobby groups have tried to convince local officials in California that they can save money by paying workers less.  In practice, these claims tend to fall apart.

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Fedex Settles Million-Dollar Misclassification Case, a Dozen Similar Suits Pending Nationwide

Posted by National Alliance for Fair Contracting on

In a settlement of a federal court lawsuit in Maine, FedEx Ground has agreed to pay $5.8 million in back pay and legal fees to 141 drivers it misclassified as independent contractors.  The lawsuit claimed that FedEx denied overtime pay and made improper deductions in addition to requiring drivers to pay for their expenses.  While there were seven named plaintiffs in the case, only two signed the settlement.  The others felt the amount being paid out by FedEx was too low.

 The federal court judge noted that if the case had gone to trial, damages could have topped $10 million. Nonetheless, the court found the settlement fair and adequate:

 In approving the settlement last week, the court acknowledged that “the proposed settlement…is clearly a compromise that discounts to some degree…the drivers’ total claims” but is a “fair trade-off for the uncertainties of trial and appeal and a prolonged delay in receiving any money. In that regard, the court noted that FedEx Ground has won some independent contractor misclassification cases and lost others.

The court also found that the amount (one-third of the $5.8 million settlement) sought by the lawyers for the class for counsels’ legal fees, costs, and expenses was reasonable.

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