LaGrange: ‘Prevailing wage’ laws need rigorous enforcement

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By: LIBN Staff
March 18, 2016

It was a successful and well-attended event and, other than the people who attended, no one knew it happened.

On March 8, 2016, hundreds attended a Public Works Symposium at the Huntington Hilton organized by Laborers Local 66 and Laborers-Employers Cooperation and Education Trust. In attendance were responsible builders and contractors, union officials, lawyers and government officials. New York State Attorney General Eric Schneiderman, New York State Comptroller Tom DiNapoli and Nassau District Attorney Madeline Singas gave remarks as well as staff from Suffolk District Attorney Tom Spota’s office. The focal point of this all-day event was enforcing the prevailing wage.

Prevailing wages are the pay rates set by law for work on public work projects. This applies to all laborers, workers or mechanics employed under a public work contract. The Bureau of Public Works administers Articles 8 and 9 of the New York State Labor Laws where Article 8 covers public construction. First created by the Federal Davis-Bacon Act, all publicly funded construction contracts over a certain amount must pay workers on-site no less than the locally set prevailing wage. This standard was established to prevent public works projects from destabilizing the local construction industry and to advance workforce development as well as eliminate the age-old race to the bottom.

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California has a Right to Withhold Funds from Charter Cities that Refuse to Apply Prevailing Wages on Public Work Projects; Court Upholds SB 7

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In recent years, a number of cities have become “charter cities,” in some cases because they believed it would “free” them from state laws requiring they pay prevailing wages on all public projects. Prevailing wages typically are what the prevalent pay is in a region.

In response, Senate Bill 7 (SB 7) passed into law, which allows the state to withhold discretionary funding from charter cities that refuse to require prevailing wage to be paid to workers on public projects.

Six charter cities (City of El Centro, City of Carlsbad, City of El Cajon, City of Fresno, City of Oceanside, and City of Vista) filed a lawsuit challenging SB 7 arguing the law is unconstitutional. In City of El Centro v. David Lanier, decided in August 2014, a judge ruled against the cities and upheld the legality of SB 7. The Court also upheld SB 922 (2011) and SB 829 (2012), which allow the state to restrict discretionary state funding to charter cities that refuse to consider adoption of Project Labor Agreements (PLAs).

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False Claims Act Case (United States, et al. v. Circle C Construction) Decided by Court of Appeals

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“We agree with the district court that the doctrine of primary jurisdiction does not foreclose plaintiffs’ FCA suit alleging Davis-Bacon Act violations where, as here, the government was not aware of the conduct at issue until after Wall filed his complaint, and thus did not deliberately bypass administrative procedures; the determination whether Circle C acted with the requisite intent to defraud the government in violation of the FCA does not necessitate technical, agency specific expertise; and the regulations explicitly provide that the falsification of payroll certifications may subject the contractor to civil prosecution under the FCA. Plaintiffs allege violations of the FCA under a false certification theory; this is not a dispute over how a particular type of work should be classified for purposes of wage determinations. Accordingly, deferral to  DOL was not warranted, and the district court properly declined to refer the case to the DOL pursuant to the primary jurisdiction doctrine…[W]e affirm the district court’s judgment with regard to liability, but reverse the award of damages and remand for a recalculation of the damages and further proceedings.”

 

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Labor activism challenges dominant drayage business model

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Bill Mongelluzzo, Senior Editor
Feb 17, 2016 5:47PM EST

The recent decision by Hub Group to discontinue its employee-based drayage operation in Southern California is the latest event in a tug of war between the independent contractor model of trucking and the employee model that is likely to continue for some time to come and the result will impact costs for shippers.

Drayage companies nationwide, and especially in California, face increasing pressure from state and federal regulators to re-classify their owner-operator drivers as employees. So-called misclassification lawsuits, some filed by drivers on their own, some supported by the Teamsters union, have resulted in a handful of companies shifting to the employee model.

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With Oil Still In The Doldrums, Wage Theft Claims Have Jumped In Colorado

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By DAN BOYCE & INSIDE ENERGY
FEB 25, 2016

Bankruptcies of oilfield companies large and small have grown as prices remain at their lowest levels in a decade or more. But company insolvencies aren’t the only way a worker can be left underpaid. A growing number of oil workers are turning to the courts, saying they weren’t paid fairly – even when times were good.

In Colorado, there were nine times as many wage suits against oil and gas companies in 2015 as there were in 2010.

With the exception of a couple of weeks in November, 28-year-old oil driller Kody Armajo has been out of work for a year. He’s back at home, living with his parents in Riverton, Wyoming.

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Solutions to wage theft include education, organizing and enforcement (MN)

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By Joey Getty and Barb Kucera, Workday Minnesota
February 22, 2016

MINNEAPOLIS – Simply passing more laws will not stop wage theft. This complex problem requires a network of solutions, including greater education on workplace rights, more organizing by workers themselves and improved government enforcement.

Many of the workers, community activists, union representatives and public officials interviewed for this series had suggestions for strengthening a system that is letting too many victims of wage theft fall through the cracks.

Education and awareness
Wage theft is a largely hidden problem.

People “sometimes feel like there’s something wrong, but they don’t know exactly what it is and they don’t know what to call it,” said Ernesto Velez, director of Centro Campesino, which does organizing among farm workers.

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Increasing enforcement at state and local levels in Massachusetts combats wage theft

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By CHRIS LINDAHL
Monday, February 15, 2016

NORTHAMPTON – Efforts are underway on the state and local levels in communities across Massachusetts to combat wage theft, the practice of employers denying workers the pay to which they are legally entitled.

Labor activists say wage theft is an unfortunate practice in workplaces throughout the country. It’s not uncommon for bosses to deny workers earned overtime, sick time or even the minimum wage, they say. The practice is particularly prevalent in the restaurant industry, which employs about 40 percent of all workers making at or below the minimum wage nationwide. It’s also common in the landscaping and construction industries, studies have found.

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NYC quadruples penalties, ramps up scrutiny of construction site safety violations

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By Emily Peiffer
February 12, 2016

Dive Brief:

  • New York City Maybor Bill de Blasio announced Friday the city will quadruple penalties for serious construction site safety violations, mandate new supervision at construction sites, and start a safety sweep of more than 1,500 work sites throughout New York.
  • The heightened focus on construction safety issues comes one week after a crane collapsed in New York City, killing one pedestrian and injuring three others. The incident, which is still under investigation, also resulted in de Blasio implementing a new, four-point construction crane safety plan.
  • The new safety provisions are included in a $120 million Department of Buildings effort to increase oversight at high-risk sites. Under the new measure, safety violation penalties will go from $2,400 to $10,000, and penalties for sites without a required construction superintendent will go from $5,000 to $25,000.

 

NIH Contractor Accused of Underpaying Workers Agrees to Settlement

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In a related case, a subcontractor for the company admitted to hiring illegal aliens for demolition work at the Bethesda research center

BY ANDREW METCALF
Published: 2016.02.22 11:00
Federal prosecutors announced Monday that a Washington, D.C., construction and cleaning firm has agreed to pay at least $450,000 to settle a case in which it was accused by whistleblowers of not paying its workers legally required wages while they were working at the National Institutes of Health in Bethesda.

…

The settlement stemmed out of a larger case in which multiple construction firms were accused by electricians and other employees of underpaying their workers, but then telling the federal government they were adhering to prevailing wage requirements as required by their federal contracts.

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