Construction Apprenticeship Training in Pennsylvania (PA)

Posted by National Alliance for Fair Contracting on
Publication Date: February 22, 2019
Executive Summary 
After a deep industry decline in and after the Great Recession, the Pennsylvania construction industry has in the last several years again faced a shortage of skilled craft workers. This shortage could grow more severe in the years ahead due to an aging construction workforce, leading to high rates of retirement. Since the early 1990s, the share of the Pennsylvania construction industry workers aged 40 and over has risen from less than a third to nearly half.
In the context of emerging skills shortages, this report evaluates the role of apprenticeship training in meeting Pennsylvania’s need for skilled construction workers, relying primarily on official government data. The report highlights the distinction between apprenticeship programs governed by joint committees of labor and management, hereafter referred to as joint or union programs, and programs governed unilaterally by individual employers or employer associations (non-union programs).
  • Union programs account for nearly six out of every seven construction apprentices in Pennsylvania. Over the 2000 to 2016 period, 85 percent of construction apprentices in Pennsylvania participated in joint labor management programs and 15 percent in non-union, management-only, programs.
  • Union programs account for nine out of every 10 Pennsylvania construction apprentices who are not white and male. Union programs had 4,883 Non-White and Hispanic male construction apprentices from 2000 to 2016 and non-union ones had 568. Over this same period, 1,083 female apprentices participated in union programs, and 83 females participated in non-union programs.
  • Union apprenticeship programs graduate more than six veterans for every one veteran graduated by nonunion programs. Nearly 3,000 (2,749) veterans have participated in union construction apprenticeship programs in Pennsylvania since 2000, compared to 516 veterans who participated in non-union ones.
  • Graduation rates are higher in union apprenticeship programs, including for minorities, women, and veterans. Of those enrolled in union apprenticeship programs from 2000 to 2012, 56% had completed their apprenticeship by 2016, compared to a completion rate of 44% for non-union programs. For minority male and female apprentices, and for veterans, graduation rates were about 25% higher for union apprenticeship programs than non-union.
  • Wage rates at entry and especially at completion are higher in union apprenticeship programs. Starting wages for union apprentices are 36% higher than for non-union apprentices. Upon completion (or “exit”), the union apprentice pay premium compared to non-union apprentices climbs to 60%.
  • Higher shares of blue-collar union trades in Pennsylvania have a two- or four-year college degree than nonunion trades and the share of blue-collar union trades with a college degree has risen to one in four. The share of unionized blue-collar trades that have a two-year or four-year college degree has more than doubled since the early 1990s, to just over 25%. The share of non-union trades that have a college degree has also risen but remains 10 percentage points below the union share.

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(PDF Copy of Report)

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Westchester County Wage Theft Trial Makes History (NY)

Posted by National Alliance for Fair Contracting on

By Teresa Santiago and Alice Kenny
Posted on May 15, 2019

First Case to Appear in Federal Court Wins Maximum Amount

In a history-making event, justice finally came to three day laborers whose wages had been stolen by their employer, thanks to significant intervention by Catholic Charities NY. A jury determined last Thursday, May 9, 2019, that TDL Restoration Inc. and its relating contractor company, TDL Management Corp., stiffed three of its employees for thousands of hours worked. The contractor did not pay the men regular wages nor overtime and when it issued paychecks they often bounced. Not only did the jury find in favor of the plaintiffs, … on all questions, but they are expected to be awarded the maximum damages permissible, close to $300,000, for violations of Federal and State labor laws.

…

Unfortunately, these three day laborers’ plight is not unusual

Unscrupulous contractors often stiff this group of men they consider not only vulnerable but powerless. Day laborers, typically immigrants, wait on corners under scorching sun and bitter cold hoping a contractor will offer them a job.

When left unpaid, they often feel powerless because of poverty and often lacking of legal status, to fight back.

Not this time

A team of organizations including Catholic Charities NY stood up to win this impressive victory for these otherwise defenseless men. Organizations included the Workers Justice legal team as well as National Day Laborer Organizing Network organizations. Counted among these organizations are Catholic Charities Obreros Unidos of Yonkers, Community Resource Center, United Community Center, Don Bosco Workers and Neighbors Link.

…

“Wage theft by TDL Restoration not only hurts the individual workers who should have been paid more under federal and state law,” said Catholic Charites Community Services Westchester Regional Director Esmeralda Hoscoy, “but also the businesses of law-abiding contractors whose bids on contracts are hired to reflect their higher labor cost.

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Washington State Gov. Jay Inslee Increases Wage Protections on Public Works Jobs (WA)

Posted by National Alliance for Fair Contracting on

May 7 , 2019

Public works projects in Washington state will have increased protections for construction workers with the enactment of a bill that allows them additional time to file complaints over failure to pay the proper wages.

Gov. Jay Inslee (D) signed into law May 7 ESSB 5035, which increases the window from 30 to 60 days after a public works job is accepted to file a complaint over failure to pay the prevailing wage.

(PDF Copy of Bill)

U.S. DEPARTMENT OF LABOR RECOVERS $2,772,977 FOR 6,450 DISASTER RECOVERY WORKERS

Posted by National Alliance for Fair Contracting on

Agency- Wage and Hour Division
Date – May 8, 2019
Release Number – 19-0721-NEW

PHILADELPHIA, PA – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), WSP USA Services Inc. – based in Winchester, Virginia, and doing business as WSP USA Inspection Services, Inc. – has paid $2,772,977 in back wages to 6,450 employees for violating the McNamara-O’Hara Service Contract Act (SCA) and the Fair Labor Standards Act (FLSA).

Under contract with the Federal Emergency Management Agency (FEMA), WSP USA Services Inc. performed disaster-related housing inspections in U.S. territories and states – including Puerto Rico, the U.S. Virgin Islands, Texas, Florida, Georgia, and California – following hurricanes and other natural disasters.

Investigations by WHD’s Caribbean and New York City District Offices found the contracting agency’s failure to amend the contract at renewal to include the most recent wage determination led WSP USA Services Inc. to underpay SCA-required prevailing wages and fringe benefits to employees. The employer also failed to post the wage determination, which lists the required pay rates for each category of work performed, and the SCA poster, as required. The FLSA violations stemmed in part from WSP USA’s failure to include bonuses in employees’ regular pay rates when determining their overtime rates. This exclusion resulted in the employer paying overtime at rates lower than those required by law.

“Contractors that bid on government contracts must exercise due diligence and be aware of – and pay – the required rates and benefits to their employees,” said Wage and Hour Division Northeast Deputy Regional Administrator Maria Rosado. “All federal contracting agencies advertising for bids and awarding contracts are required to include the McNamara-O’Hara Service Contract Act labor standards and a current wage determination stating the minimum wages to be paid various classes of service employees. Our enforcement of these requirements help to level the playing field for all contractors doing business with the government.”

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OPINION: Prevailing-wage repeal, not as benign as some would have you believe

Posted by National Alliance for Fair Contracting on

By: Dan Shaw
May 3, 2019 11:48 am

Prevailing-wage laws require that construction workers on public construction projects be paid the wages and benefits offered on similar jobs performed by local Wisconsin workers.

This is by no means an extreme idea. In fact, in a recent poll, 83% of the respondents who identified themselves as likely Wisconsin voters said they believe that bid prices for public works should take into account wages and benefits that are comparable to those paid in the same trades elsewhere in the state. Sixty-one percent specifically said they support prevailing-wage laws.

In other words, the public understands that public-works projects should stimulate the local and state economy by properly paying Wisconsin workers. John Mielke and the organization he runs, the Associated Builders and Contractors of Wisconsin, clearly disagree.

After the repeal of state prevailing-wage laws for municipal projects, we saw a nearly 40% increase from 2015 to 2018 in the number of out-of-state contractors winning municipal public works projects in Wisconsin. In 2018 alone, more than $160 million worth of municipal public-works projects were awarded to out-of-state contractors.

For every dollar of construction value that is completed by an out-of-state contractor, economic activity decreases by $2.26 in Wisconsin. In 2018, Wisconsin lost more than $361 million worth of economic activity by having out-of-state contractors perform these local taxpayer-funded projects. It is too soon to measure the effects of losing prevailing-wage protections on state-funded projects, but we can all assume the outcomes will be similar.

I agree with Mr. Mielke that the U.S. economy is growing and that contractors in Wisconsin are scrambling to find skilled workers. Simple principles of supply and demand require the wages of these workers to increase.

(Read More)

California Independent Contractor Test Applies Retroactively (CA)

Posted by National Alliance for Fair Contracting on
  • ‘Legal tradition’ is to apply judicial decisions retroactively
  • Applying ABC test to pending cases serves wage law’s goals

Posted May 2, 2019, 12:44 PM

A California Supreme Court ruling that created a strict standard for determining who is an “employee” applies retroactively, the Ninth Circuit held May 2 in a ruling expected to have a wide reach.

The decision means a legal test created last year by the California Supreme Court in Dynamex Operations West, Inc. v. Superior Court-making it harder for companies to classify workers as independent contractors-will be applied to cases going forward, as well as to disputes dating back to before the new test was enacted. Formal “employee” status comes with additional rights and benefits to workers.

The U.S. Court of Appeals for the Ninth Circuit’s opinion has major implications for California employers that rely on independent contractors, including gig economy companies like Uber Technologies and Postmates, and could even compel some businesses to simply reclassify contractors as employees and change pay and benefits. …

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Colorado passes law making wage theft a felony (CO)

Posted by National Alliance for Fair Contracting on

Author – Kim Slowey
Updated – May 17, 2019

UPDATE: May 17, 2019: Colorado Gov. Jared Polis on May 16, signed The Human Right to Work With Dignity Act (HB-1267) into law, reclassifying intentional nonpayment of more than $2,000 of wages a felony theft.

“Unscrupulous employers who purposefully withhold wages or underpay workers hurt the economy by undercutting good employers’ bids, engaging in tax fraud and denying workers fair compensation,” said one of the Act’s sponsors, Rep. Meg Froelich.

The new law takes effect Jan. 1, 2020.

Dive Brief:

  • The Colorado General Assembly’s House Judiciary Committee approved a proposed wage theft bill that would make intentional underpayment of certain wages a criminal offense.
  • In Colorado it is a misdemeanor to willfully short employees on their paychecks, but the new measure would make it a felony theft to intentionally underpay them by $2,000 or more. The bill includes migratory and foreign workers under the definition of employee.
  • One of the bill’s stated intentions is to provide an additional vehicle for state law enforcement to fight labor trafficking by recognizing labor as a thing of value that is subject to theft. According to the General Assembly, labor trafficking each year costs Colorado workers hundreds of millions of dollars and the loss of tens of millions of dollars to the state.

Dive Insight:

According to the Colorado Fiscal Institute, more than 500,0000 workers in the state – many of them in the construction industry – lose $750 million a year because of wage theft. The institute’s analysis shows that the most common methods employers use to short employees on their pay are:

  • Nonpayment, which includes late payments and not paying employees what they’ve earned.
  • Underpayment.
  • Misclassification of employees as independent contractors in order to avoid having to pay benefits.
  • Unauthorized payroll deductions for expenses like transportation, materials and tools.

There has been a push by some states and cities to address wage theft and misclassification of workers as independent contractors. In California, lawmakers are considering codifying a state Supreme Court ruling that sets the parameters of which workers qualify as independent contractors. The “ABC” test asks whether the person claiming to be an independent contractor is free from the control and direction of the employer; performs work that the hiring employer doesn’t typically do; and engages in the work as part of a business.

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Reject road swap program (IA)

Posted by National Alliance for Fair Contracting on

Quad-City Times Editorial Board
May 26, 2019

On Tuesday, members of the Bi-State Regional Commission’s Transportation Policy Committee are scheduled to decide whether to take part in the federal aid swap program authorized by the Iowa Legislature in 2017.

For months, labor unions and local contractors have been lobbying against the program, which state officials say is a way to deliver projects faster and at less expense. The state says it has the experience managing projects that come with the overhead and regulations that are part and parcel of federal-aid projects.

Unions say this would be a way to avoid federal prevailing wage requirements, and that it will lead to lower-cost, out-of-area contractors winning jobs that previously had gone to local companies. They also say the swap will bypass federal requirements to buy American products and ensure some contracts go to minority- and women-owned businesses.

The swap program basically works like this: The state would give local governments state dollars in exchange for their federal dollars for road and bridge projects. According to the Bi-State Regional Commission, about $15 million dollars in swap-eligible funds are in its four-year Transportation Improvement Program.

Iowa’s Department of Transportation says this concept is not unique. Other states in the Midwest are doing it. And on these pages last week, Mark Lowe, the DOT director, wrote that the same amount of federal money, with all the attendant federal requirements, will be spent in this area – it will just be administered by the state DOT rather than local authorities.

Our concern is the impact this will have on local contractors. Consider Michelle DeCap, chief financial officer of Phoenix Corporation, of Rapids City, Ill. This Quad-City company has done projects on both sides of the river for years. DeCap told us that, even though the same amount of federal money might be spent locally, she believes the funds will be rolled into larger state jobs and there will be a smaller number of projects for her firm to bid on – meaning fewer opportunities for Phoenix, a certified woman-owned business, to win local projects.

A number of area organizations, many of them labor unions, have opposed this move. But so has the Quad-Cities Chamber of Commerce. The chamber worried that participating in the swap program “may allow for more businesses from outside the Quad-Cities region that don’t follow [federal wage and discrimination] guidelines to garner work, which would have a direct negative impact on our region.”

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Illinois troopers plan undercover patrols dressed as construction workers (IL)

Posted by National Alliance for Fair Contracting on

BY WQAD DIGITAL TEAM
UPDATED AT 08:29 AM, MAY 7, 2019

EAST MOLINE, Illinois — Illinois troopers plan to start dressing up like construction workers as they patrol work zones.

“Somebody is going to get hurt,” disguised Illinois State Trooper Ron Salier said. “That’s why we’re out here. We are trying to make a difference and educate people.”

The undercover patrols were set to begin Monday, May 6 in conjunction with Work-Zone Safety Week, which lasts from May 6th through May 10th.

“It’s not about writing tickets,” Illinois State Trooper Jason Wilson said. “It’s not about pulling people over, it’s about keeping people safe.”

Wilson says so far in 2019, 19 trooper cars have been hit. 17 of those cars were pulled over on the side of the road.

“Reminding drivers the human element that they are actually driving through,” Wilson said. “This is a work zone. Imagine if you were at your office and somebody drove through at 80 miles an hour.”

According to the Illinois State Police, troopers will be watching for speeders, distracted drivers and other violators in construction zones. The campaign is called “Operation Hard Hat.”

“Our hope is the plain-clothes Trooper doesn’t observe any violations. That would mean drivers were operating their vehicles safely,” said Distict 7 Commander Captain Jason Dickey. “Sadly, that will probably not be the case.”

Up until now, patrols in work zones have been in marked vehicles.

(Read More)