Labor Joins Gonzalez Fletcher to Introduce New Bill to Protect Workers from Misclassification

By Nick Kotsopoulos
Telegram & Gazette Staff
Updated Dec 9, 2018 at 8:05 PM

Imagine working side-by-side with others who have all the benefits of being an employee of a company including paid sick days, a minimum wage, workers’ comp, unemployment insurance and more. Now imagine you are doing similar work without any of those protections because your boss decided to call you an “independent contractor” instead of an employee simply because he wants to cut corners on costs.

It’s called misclassification, and it’s a growing and devastating problem for workers, businesses that do the right thing and our economy as a whole.

The California labor movement joined Assembly member Lorena Gonzalez Fletcher today to tackle this problem head on, codifying into state law a recent California Supreme Court decision that provides a simple test employers must meet to classify workers as independent contractors. The test, a version of which exists in other states, removes uncertainty and ensures workers who are doing the job of an employee have all the protections and rights that should be afforded to them.

Alexei Koseff details the new effort to protect workers in today’s Sacramento Bee:

The bill would strengthen rules that make it harder for employers to classify workers as contractors and limit their rights under state labor laws.

“Individuals are not able to make it on three side hustles. That shouldn’t be the norm. That shouldn’t be accepted,” Gonzalez Fletcher said. She said the court’s decision is essential for maintaining solid employment for workers in a changing economy and for combating the income inequality that has helped drive California’s poverty rate to one of the highest in the nation.

“What we permit, what we don’t permit, what has worked for generations and built the middle class of California, needs to be largely intact,” she said.

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Former Obama labor official details how to stop misclassification

Smith, speaking at forum in Newark, said interagency, coordinated enforcement and data sharing are two keys

By Alex Wolmart
Newark | Dec 6, 2018 at 1:56 pm

While many brought their worries and hardships, Patricia Smith brought solutions.

Smith – senior counsel at the Manhattan-based nonprofit the National Employment Law Project – broke down the issue of employee misclassification at an event sponsored by the New Jersey Department of Labor and Workforce Development on Wednesday in Newark.

Misclassification is misclassifying workers as independent contractors by filing 1099s rather than W2s. Employers who misclassify avoid having to pay unemployment and disability taxes.

Misclassification, by itself, is not illegal,” she said. “What’s illegal is the consequences of misclassification. When you find misclassification, you’re going to have, depending upon what you’re enforcing, a remedy.”

Smith, a former labor official in President Barack Obama’s administration, has been involved with misclassification for more than 20 years. She said interagency, coordinated enforcement; data sharing; a robust public and press outreach strategy; agency cross-training and joint employment; criminal referrals in appropriate cases; and required reports to either the Legislature or governor on a frequent basis are how the misclassification of employees as independent contractors will be remedied.

Labor Commissioner Robert Asaro-Angelo led the forum. He told the room of a few dozen workers, union reps and lawyers that Gov. Phil Murphy gets it.

“We’re at a time in our state where our governor and this administration wants to stand up for the right to protections, for the women and men who work hard and deserve the opportunities and benefits that they are entitled to,” he said.

And while many public advocates came to give their testimony, it was Smith who had the most to say.

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California passes AB 2358 aiming at discrimination & harassment in Building & Construction Trade Apprenticeships

By Andrea Matsuoka | October 24, 2018

California Governor Jerry Brown recently signed AB 2358, a bill that seeks to address potential discrimination and harassment in building and construction trade apprenticeship programs. While AB 2358 contains broad anti-discrimination language, it was designed to encourage women in particular to pursue building and construction careers, beginning with apprenticeships.

AB 2358 expressly prohibits discrimination in building and construction trade apprenticeship programs on the basis of enumerated categories including sex, gender, race, national origin, religious creed, and disability. AB 2358 also requires these apprenticeship programs to affirmatively promote equal opportunity in several ways:

  • Programs must include an equal opportunity pledge in their apprenticeship standards, publications and bulletin boards; incorporate equal opportunity policies into orientations and information sessions; and provide equal opportunity notices to contractors annually.
  • Programs also must provide interactive anti-harassment and anti-discrimination training to all apprentices, instructors, and employees and implement procedures for handling and resolving complaints of harassment or discrimination.
  • Programs must designate one or more individuals to monitor all apprenticeship activity for equal opportunity compliance and to maintain compliance records, in order to promote coordination and accountability.

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Should workers report underground businesses?

November 08, 2018

In addition to government, which is defrauded of tax revenue, workers are often a casualty of the underground economy. Underground businesses are not likely to expend effort to protect workers from occupational hazards, much less comply with federal and state workplace safety rules. And given that a great deal of underground employment involves physically taxing and highly hazardous work, the risk of injury and death far exceeds what is typical in a law-abiding business.

While the risk may be worth it for individuals who cannot find employment with a legitimate business, government still urges workers to report businesses that operate outside the law. For example, California’s Labor Enforcement Task Force (LETF) notes that its enforcement efforts benefit greatly from leads from the public. The LETF, in fact, lists the kind of information that makes for a good lead, and the better the information, the better the chance the lead will be investigated quickly.

$385 billion tax gap

California’s Employment Development Department (EDD) says that the term underground economy refers to “those individuals and businesses that deal in cash and/or use other schemes to conceal their activities and their true tax liability from government licensing, regulatory, and taxing agencies. Underground economy is also referred to as tax evasion, tax fraud, cash pay, tax gap, payments under-the-table, and off-the-books.”

OSHA

The Occupational Safety and Health Act of 1970 gives employees and their representatives the right to file a complaint and request an OSHA inspection of their workplace if they believe there is a serious hazard or their employer is not following OSHA standards. Workers do not have to know whether a specific OSHA standard has been violated to file a complaint. The complaint should be filed as soon as possible after noticing the hazard or lack of compliance because OSHA citations may only be issued for violations that currently exist or existed in the past 6 months.

“Complaints from workers or their representatives are taken seriously by OSHA,” says OSHA. “OSHA will keep your information confidential.

A good lead

The LETF says it focuses on low-wage industries and high-hazard occupations but, regardless of the industry sector, will review all reported cases of unlawful activity and “handle each case appropriately.”

“You may remain anonymous when you make your report,” states the LETF. “However, if you leave your contact information, we can ask follow-up questions, which may determine whether we are able to investigate the lead or not.”

If there is uncertainty about whether an employer is breaking the law, the LETF says answers to the following questions will help:

  • Is the employer providing itemized statements to employees?
  • Is the employer paying minimum wage and overtime?
  • Does the employer have a valid workers’ compensation insurance policy?
  • Does the employer provide a safe working environment for employees?
  • Is the employer correctly reporting wages to the EDD and paying payroll taxes?
  • Is the employer operating with the appropriate licenses or registration?
  • Is the employer correctly classifying workers as employees versus independent contractors?

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Support Prevailing Wages in Greater Minnesota

By Filiberto Nolasco Gomez, Workday Minnesota
November 2, 2018

The Fair Contracting Foundation works to elevate the legal enforcement of applicable laws to ensure quality contractors have the opportunity to compete fairly. One of their focuses is protecting prevailing wages.

“Greater Minnesota supports its local economies and strengthens its skilled workforce with good jobs. Prevailing wage laws ensure that every County and region can protect its good jobs and local standards. Support prevailing wages! ”

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Veterans can trade helmets for hardhats [Opinion]

Helmets to Hardhats is a national nonprofit that empowers our nation’s service members to succeed once they choose to return to civilian life by connecting them to sustainable apprenticeship training programs and career opportunities in the building and construction industry.

By Leonard Aguilar | Nov. 11, 2018

Our veterans are tough – they can do anything they put their minds to. They are our nation’s bravest men and women – individuals who have dedicated their lives to service.

With that said, transitioning from military to civilian life is an understandably challenging time for many veterans. There are many unknowns: How will this work? What comes next?

In my role as executive director and secretary-treasurer of the Texas State Building and Construction Trades Council, I know what it takes to thrive in the construction industry. I have also seen firsthand how the skills and qualities developed in the military can prove invaluable on a jobsite – from diligence and resilience, to drive and integrity.

As Veterans Day is upon us, I would like to highlight one organization that gets it right: Helmets to Hardhats.

Helmets to Hardhats is a national nonprofit that empowers our nation’s service members to succeed once they choose to return to civilian life by connecting them to sustainable apprenticeship training programs and career opportunities in the building and construction industry.

Yes, returning home can be difficult. However, our focus should shift to making veterans’ homecomings less burdensome – both on themselves and on their families. If veterans are made aware of the opportunities that await them, returning home can become less stressful and more exciting.

The apprenticeship training of North America’s Building Trades Unions (NABTU) is a natural fit for transitioning service members.

When Helmets to Hardhats connects the armed forces community with this training, it can be a perfect match – evidenced by the fact that most individuals who experience successful transitions begin with little to no experience in their chosen field.

Even better, the apprenticeship programs are privately-funded – provided by the trade organizations and their contractors at no cost to American taxpayers.

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I won’t be pushed back into nonunion construction

Barrie Smith
October October 23, 2018

To the editor:

In his latest letter to the editor, Richard Berman continues to peddle false and hateful claims about the supposed treatment of African-Americans by New York City construction unions.

As an African-American man who worked, and almost died, doing nonunion construction in this city, few things could be more insulting than having a rabidly anti-union white man beholden to nonunion construction companies claim to speak about what it means to treat me fairly.

I know full well he could not care less about me or anyone he proports to show outrage on behalf of.

It is no wonder Berman can’t find a single black advocacy group in this city to deliver his despicable message. No responsible person would. The social-justice community here is actually well past talking about how “diverse” the building trades now are. That is a given fact now.

What is actually getting talked about is how the construction unions are providing the most unprecedented opportunities for African-American men and women returning from long periods of incarceration to truly re-enter society and re-start their lives. Yes-the building trades are actually now at the forefront of the civil rights struggle in this city. People who care about that issue know it. And no one has the time or patience anymore for Berman’s nonsense.

Numerous studies have shown-contrary to Berman’s claims-that the national pay gap between white and black workers is substantially ameliorated by collective bargaining agreements. But what really matters to workers of color is how they get paid and treated when they show up for work. Nonunion minority construction workers in the city are making a whopping 45% less than their counterparts with union representation. People care about whether they can feed their families, not fake statistics. The union jobs are the ones that make that possible.

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Higher Minimum Wage Could Mean A $6,000 Raise For As Many As 1.4 Million Illinois Workers

Frank Manzo IV
October 25, 2018

La Grange: An increase to Illinois’ state minimum wage would grow the state’s economy and boost the paychecks of as many as 1.4 million workers by up to $6,000, according to new research from the Illinois Economic Policy Institute (ILEPI) and Project for Middle Class Renewal at the University of Illinois Urbana-Champaign.

The policy brief assesses the economic impacts of three different proposals (increasing to $10 an hour by 2019, to $13 an hour by 2022, and to $15 an hour by 2024) to raise the state’s current minimum wage, which has been set at $8.25 an hour since 2010.

“Increasing the minimum wage is a win-win-win for workers, taxpayers, and the economy,” said ILEPI Policy Director Frank Manzo IV. “It means higher wages and less poverty for workers, more spending across the economy, higher tax revenues, and less reliance on welfare programs.”

Among the three scenarios studied, researchers found that a minimum wage increase would increase paychecks for 6%-23% of the state’s total workforce.

The report finds that the increased consumer spending associated with wage increases would grow the economy by $5 billion-$19 billion per year.

The researchers note that wage increases have not produced the negative impacts on employment often claimed by opponents. A recent study found that job growth in the City of Chicago, which began increasing its minimum wage in 2014, has more than kept pace with surrounding suburbs that made no changes to their minimum wage policies. Additionally, researchers note that 9 of the 13 states with minimum wages of at least $10 per hour have unemployment rates that are the same or lower than Illinois.

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Harbor Yard Amphitheater workers seeking appropriate wages (CT)

By Jordan Grice
Published 12:00 am EST,
Sunday, December 16, 2018

Construction workers building Bridgeport’s new concert amphitheater say they are being stiffed on their paychecks, and the Department of Labor agrees with them.

In a letter to the city’s economic development department, state labor officials said the contracting agency of the Harbor Yard Amphitheater – which according to the project contract is developer Howard Saffan – broke the law by not applying prevailing wage requirements when putting the project out to bid.

Saffan did not return several calls for comment.

The prevailing wage statute provides contractors for large-scale projects involving public funding with an assigned wage rate and scheduled payroll.

Bridgeport and developer Howard Saffan are splitting the amphitheater’s $15 million price tag.

That wasn’t the case when construction of the concert venue got started, according to the letter from the DOL, which stated that developers and the city failed to request a prevailing wage pay rate schedule or include it in the bid specifications.

“Looks like a 50-50 relationship; what you just read fits the classic definition of a public works project. Public funds are in place, it’s a public project that will benefit the public,” said Thomas Wydra, director of the Wage and Workplace Standards Division for the state Department of Labor

Both city official and developers should have been aware of the law, Wydra said.

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The need for Prevailing Wage (DE)

PUBLISHED NOV 27, 2018 AT 3:38 PM

The basic reason why the prevailing wage was created was to help local contractors to compete with out-of-state contractors, paying a lower rate. The same people complaining about the prevailing wage would also be complaining about immigrant labor coming into a county for those jobs. If you visit Columbus Avenue in Palisades Park or areas of Dover, you would see immigrants getting picked up for Construction jobs! Are they properly trained? No, I have created apprenticeships following tenets of the National Bureau of Apprenticeship Training, and I know what is needed for a 4- or 5-year program!

The rates or wages for prevailing wages are developed by surveying contractors and unions to determine the wages for each classification (Source: William Winkler)! Some of the variables looked at are the wages in the largest city in a county, viewing the majority wage! If more than one-half of all the workers reported in that city are at a certain wage than that is the majority wage rate and that wage rate becomes the rate for the whole county.

If there is not a majority wage, as listed above, then a weighted wage is computed using data from the largest city in the county, and that becomes the prevailing wage. If no hours are reported in a county’s largest city then a wage is computed for the county, and that becomes the Prevailing wage, and finally, if no data is reported for the entire county, and that county’s old Prevailing Wage remains in effect. This has been the process, since 1931, and earlier in an historical context.

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