DOL Names New Acting Wage and Hour Administrator

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The National Law Review
Tuesday, February 5, 2019

On February 1, 2019, the U.S. Department of Labor publicly designated Keith Sonderling as Acting Administrator of the Wage and Hour Division (“WHD”).  He joined WHD in September 2017 as a Senior Policy Advisor, receiving a promotion to Deputy Administrator last month.  Before joining the Department, he was a shareholder in the Gunster law firm in West Palm Beach, Florida, where he represented businesses in labor and employment matters.

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Sonderling steps into the role vacated last month by Bryan Jarrett, who led WHD since October 2017.  President Trump nominated Cheryl Stanton to serve as Administrator of WHD in September 2017, and she continues to wait for a confirmation vote in the Senate.

WHD enforces the minimum wage, overtime, and child labor provisions of the FLSA, as well as the Family & Medical Leave Act and several prevailing wage statutes applicable to federal government contracts, among other laws.

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Another Voice: New York needs to define ‘public work’ on construction jobs (NY)

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By Matt Kent
Published February 2, 2019

In his recent State of the State address, Gov. Andrew M. Cuomo threw his support behind a key plank of the growing movement to properly define public work construction. His call that “project construction with public subsidies should be subject to the prevailing wage so they’re built right” is encouraging news for fans of responsible government.

The New York Foundation for Fair Contracting, a nonprofit promoting a level playing field in public construction to benefit taxpayers, contractors and workers, applauds Cuomo’s initiative.

For over a century, New York State has required contractors on taxpayer-funded government construction projects to pay workers the region’s “prevailing wage.” This practice, and the requirement these projects be competitively and transparently bid, have long enjoyed bipartisan support throughout the state.

However, many economic development projects in place across the state fall outside the long-standing taxpayer and worker protections built into state law. Millions of taxpayer dollars are spent without the transparency demanded of traditional public work projects.

Properly defining “public work” to include all projects supported with public money (including IDAs, regional economic development councils, and the Buffalo Billion) will promote accountability and transparency in government spending. It’s unacceptable that the current loophole allows public money to bypass this process as it goes to private interests.

As reported in The News, some critics called the governor’s prevailing wage proposal a “death sentence” for upstate economic development, saying it would increase costs and hurt the local economy. Quite the opposite – the vast majority of peer-reviewed studies find no connection between prevailing wage and project costs. In fact, when Indiana outright repealed its prevailing wage law, the Midwest Economic Policy Institute found the state “failing to deliver any meaningful cost savings or increased bid competition promised by those in favor of repeal.”

Instead, the repeal triggered an 8.5 percent collapse in blue-collar construction worker pay and a surge of out-of-state workers on state construction jobs. Conversely, communities with robust prevailing wage laws report stronger tax bases and lower reliance on public assistance programs. Weak fair contracting laws hurt workers and make little economic sense.

The New York Foundation for Fair Contracting is encouraged by the prospect of an inclusive definition of public work, which will result in greater protection for state taxpayers, better pay for local workers, and fair and transparent bidding.

Matt Kent of Buffalo is an analyst with the New York Foundation for Fair Contracting.

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The case for prevailing wage (NY)

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Foes say it adds costs to projects, but New York should strengthen this mandate


Patrick Purcell
February 19, 2019 12:00 AM

New York cannot afford to continue subsidizing a developers’ paradise with little to no public responsibilities tied to these taxpayer dollars.

This is a reality that Gov. Andrew Cuomo understands well. His inclusion of prevailing wage requirements on publicly subsidized projects in his budget proposal is a testament to that.

On the other side, there are forces with little interest in understanding just why prevailing wage requirements are so critical to the economic health and development of New York. An analyst for the Empire Center for Public Policy was quoted in a recent article stating, “New York’s prevailing wage mandate is an archaic law that needlessly adds 25% to the cost of construction in the city.” He said that outside of New York, the law increases project costs by 13%.

Now, these claims aren’t completely wrong. New York does have legislation that is archaic-legislation that gives private developers a loophole to take public subsidies for their projects with no responsibility to taxpayers in return. Countless projects across the state have received subsidies with zero wage requirements attached them. Just one example is Fresh Direct in the Bronx.

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Those opposed to prevailing-wage legislation based on mistaken beliefs about increased construction costs also fail to take into account that the cost of living in New York is high. When developers come to New York-and especially when they building on taxpayers’ dime-they should have to pay their workers livable wages.

Counter to the idea that prevailing-wage mandates needlessly add to the cost of construction are the actual facts.

Fact: Prevailing wages would boost the economy upstate and downstate.

Fact: Mandating wage standards and taxpayer benefits would generate an additional $3.5 million to $6.9 million in annual sales tax revenue.

Cuomo sees the bigger picture. He recognizes that prevailing wage requirements are critical to get the best return on investment for taxpayer dollars and create jobs that serve New Yorkers rather than exploit them as many developers would do if it were up to them. Without these mandates and a clearer definition of public works, developers will continue to capitalize on loopholes in definitions of private projects and a lack of accountability to workers and taxpayers alike.

It’s up to Albany to do what is right for New York and pass public-works legislation before April 1. Tick tock.

Patrick Purcell is executive director of the New York State Laborers’ Union, which represents more than 40,000 construction workers

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Council bill aims to impose prevailing wage on all city-subsidized projects (NY)

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Wage and safety bills would incentivize union labor, but critics fear higher price tag.

By Jeff Coltin
JANUARY 8, 2019


New York City Councilman Ben Kallos is reintroducing a stalled bill that would require all construction workers to get paid the prevailing wage on any projects getting city subsidies.

Under state law, any project built under a government contract must pay workers the prevailing wage. Kallos’ bill would cast a much wider net, mandating the prevailing wage for not just direct government contracts, but for any projects getting grants, bond financing, tax abatements or any other sort of support valued over $1 million from the New York City government.

“The same rules should apply when the city is doing the work directly or when they’re subsidizing somebody else to do the work,” the Manhattan lawmaker told City & State.

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Critics like the Real Estate Board of New York, which represents developers, have spent heavily in the past to oppose efforts to expand the prevailing wage requirements, claiming higher labor costs would discourage private developers from building affordable housing.

Kallos countered that paying workers less than prevailing wage actually makes the affordable housing crisis worse by creating demand for housing at deeper levels of affordability.

“I’m disappointed to learn even the construction workers can’t afford the affordable housing that they are building,” he said.

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Rep. Christine Chandler Champions Fair Wages Bill To Prevent Wage Theft … Now Heads To House Floor (NM)

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Submitted by Carol A. Clark on February 23, 2019 – 8:34am

SANTA FE – The House Judiciary Committee passed Rep. Christine Chandler’s (D-Los Alamos) bill Friday to champion fair wages and benefits for workers. House Bill 246, regarding the Prevailing Wage, protects workers adversely affected by wage theft.

House Bill 246 ensures that New Mexicans are paid a fair wage for a hard day’s work by closing loopholes, providing a complaint resolution process, and increases penalties for violations. Addressing these issues in the Prevailing Wage law will keep jobs local, workplaces safe, and ensure quality workmanship in public projects.

Specifically, the bill makes certain that all employees working on public works projects are compensated fully. The bill also provides a process for workers to initiate prevailing wage complaints, and a mechanism for complaint resolution. House Bill 246 also increases penalties for those who do not properly compensate workers according to the Public Works Minimum Wage Act.

“Wage theft and treating workers unfairly undermines New Mexico’s economy. This legislation protects workers from exploitation and ensures they receive their hard-earned paychecks,” Rep. Chandler said. “Wage theft runs contrary to our values as New Mexicans, and I am proud to see this legislation move forward for working families.”

House Bill 246 now heads to the House floor.

(See Article)

‘Times Are Changing:’ More Women Breaking Into Construction Industry (NY)

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By Matt Kent
Published February 2, 2019

NEW YORK (CBSNewYork) – More and more women are shattering the glass ceiling and making their mark in the male dominated construction industry.

“Times are changing. It’s not just a man’s world anymore,” Tanay Matthews, of Brooklyn, told CBS2’s Vanessa Murdock.

Matthews works construction with Local 361.

“I love it, honestly. It’s tough, it’s physically draining, but every day I wake up and I give it my all,” she said.

She said she’s typically the only woman on site.

“I work with about 30 men now. My last job might have been 200,” she said.
According to the Building & Construction Trades Council of Greater New York City, women make up just four percent of the construction unions workforce. But as Matthews said, times are changing.

“Work needs to be done to continue to get the word out to women and young girls that yes, you can do this, this is a career for you,” said Kathleen Culhane, president of Non-Traditional Employment for Women, or NEW.
NEW offers a two-month pre-apprenticeship training program for women of New York City, many of them unemployed or underemployed women of color.

“It’s booming now. I’m so confident now that I’m going to be great, my family is going to be great,” said Shanique Latimer, who’s finishing up her training at NEW.

“My last job I worked at the World Trade Center and I’ve seen all these women – construction women – walking back and forth and they have like this pride on their face, and I wanted that for myself,” Tshura Williams added.

Now, she has the tools. 

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Financial Fraud and Wage Theft Continue to Plague Construction Industry

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Cases of fraud and wage violations continue to soil the image of the construction industry during this labor shortage

The National Law Review
FEBRUARY 28, 2019

Every week there seems to be yet another item in the news about contractors being charged with fraud, wage theft and more. This week is no different, unfortunately. 

In Arkansas, Matthew Beasley, President of Cobas, Inc. construction company in Conway, AK, was sentenced to 36 months in federal prison for defrauding a bank by creating fraudulent invoices. According to the Unisted Sates Department of Justice press release, Cobas would perform construction work for other companies and send invoices for that work.

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Meanwhile in Massachusetts, a state that has been under scrutiny for construction wage theft, Attorney General Maura Healy issued 165 civil citations against 66 construction companies in 2018. According to a press release from the Attorney General, restitution in 2018 exceeded $1.47 million for more than 1,030 employees, and the companies were fined more than $1.23 million.

Violations included:

  • Failure to page proper wages
  • Failure to pay overtime
  • Retaliation
  • Failure to furnish records for inspection
  • Failure to pay prevailing wage
  • failure to submit true and accurate certified payroll records
  • Failure to register and pay apprentices appropriately

“Workers in the construction industry are particularly vulnerable to wage theft from dishonest contractors who cheat their workers,” said AG Healey. “As Massachusetts undergoes a historic construction boom, my office will continue to fight for exploited workers and ensure they are paid the wages they earn.”

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Supes Unanimously Approve $500K For Office Protecting Workers’ Rights (CA)

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Bay City News Service
Published 6:44 pm PST, Tuesday, February 12, 2019

The Santa Clara County Board of Supervisors voted unanimously to stand with workers who have experienced wage theft or abuse from their employers by increasing the budget of its enforcement office by $500,000 on Tuesday. 

The decision brings the Office of Labor Standards Enforcement’s overall funding to $1 million, which will be directed toward multilingual workers’ rights trainings, individual interviews for workers who report abuse and greater partnerships with community-based rights organizations. 

The training curriculum may include education on human and labor trafficking, wage theft, sexual assault, sexual harassment, and retaliation, as the office moves toward expanding its purview in these areas. 

The office was established in November 2017, but many workers argued its scope was limited. Some individuals said they had won settlements against their employers, but the money had not yet been awarded to them due to a lack of enforcement. 

The supervisors’ vote begins to address funding for both issues. 

“This decision will have a major impact on wage theft in Santa Clara County and help to protect workers from wage theft, human trafficking and sexual assault,” Derecka Mehrens, executive director of Working Partnerships USA, said in a news release. 

Smaller local organizations, such as those directed to Vietnamese, Filipino and Chinese-American communities, will be able to work with the county to identify industries that frequently violate the law.  

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AG Becerra, Assemblymember Gonzalez Unveil Legislation to Strengthen Program to Combat CA’s Underground Economy (CA)

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Submitted by Carol A. Clark
on February 23, 2019 – 8:34am


SAN DIEGO, Feb. 22, 2019 – California Attorney General Xavier Becerra and Assemblymember Lorena Gonzalez today unveiled legislation, AB 1296, the Tax Recovery in the Underground Recovery program (TRUE Act), to combat underground economic crimes. AB 1296 is sponsored by Attorney General Becerra and was introduced by Assemblymember Lorena Gonzalez.

“With underground economic crime, our workers get exploited, business owners face unfair competition, consumers get ripped off, and taxpayers bear the burden,” said Attorney General Becerra. “AB 1296 expands on successful efforts to prosecute violators and recover funds involved in wage theft, tax evasion, counterfeit commerce and other economic crimes. The funds recovered become available to benefit cheated workers, our schools, law enforcement and our communities.”

“The underground economy hurts everyone: workers who are left without protection, consumers who are sold dangerous or fake products, and the state as we lose tax money,” said Assemblywoman Gonzalez. “This task force is a unique, collaborative approach for law enforcement to breakdown its usual silos and execute wider solutions for targeting the underground economy.”

According to a University of California at Los Angeles Labor Center report, the state’s underground economy generates between $60 to $140 billion in unreported revenue annually, depriving the state of $8.5 billion in corporate, personal, and sales and use taxes each year. TRUE’s pilot program, established in 2014, allowed agencies in Sacramento and Los Angeles to work together to investigate and prosecute the most outrageous felony-level multijurisdictional underground economic crimes in California. In September 2018, Attorney General Becerra announced the results of a year-long investigation that led to charges against a family of four for labor exploitation and human trafficking. In October 2018, Attorney General Becerra also announced that the State of California regained lost state revenues from an underground prescription drug business, from an illegal pharmaceutical scheme and from operators who possessed counterfeit merchandise intended for sale. AB 1296 builds on the success of a state pilot program by permanently establishing law enforcement teams in Sacramento and Los Angeles and authorizing additional teams in the three other major metropolitan regions of the state-San Diego, the Bay Area, and Fresno.

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SEATTLE CITY COUNCIL TARGETS IC MISCLASSIFICATION, GIG ECONOMY (WA)

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February 22 2019

The Seattle City Council passed a resolution this week targeting the misclassification of workers as independent contractors when they should be designated as employees.

The lawmakers requested semi-annual updates to the Council, starting at the end of this year’s third quarter, on what the Office of Labor Standards and Labor Standards Advisory Commission is doing to investigate and correct misclassifications.

“There are more and more employees who are being categorized as contractors and are not eligible to receive access to our labor laws,” Councilmember Lisa Herbold during Tuesday’s meeting, GeekWire reported. She said she had ongoing conversations with a driver for Amazon Flex, human cloud platform that enables drivers to deliver packages with their own cars.

“Companies pay the drivers to do the work of employees but treat them as independent contractors, denying them basic amenities like healthcare benefits [and] worker compensation,” Herbold said.

The resolution asks the Office of Labor Standards, the city department that investigates and enforces the city’s labor laws, to:

  • Propose policy solutions to help address this issue of misclassification.
  • Develop enforcement strategies and subject matter expertise to resolve misclassification inquiries and complaints
  • Develop outreach and education strategies for the Office of Labor Standards to inform workers and employers.
  • Work with the Office of Intergovernmental Relations on those issues most appropriately addressed by the state, and incorporate them into the city’s 2020 State Legislative Agenda.
  • Work with experts in employment law to perform a thorough legal analysis on ways to mitigate the adverse impact of the Supreme Court’s decision in Epic Systems Corp v. Lewison Seattle workers’ ability to band together to challenge an employer’s illegal acts.

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