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III FFC Celebrates Passage of Colona Responsible Bidder Ordinance

Posted by National Alliance for Fair Contracting on

May 31.2023

Indiana, Illinois, Iowa Foundation for Fair Contracting Celebrates Passage of Colona Responsible Bidder Ordinance

Colona passes local ordinance to promote workforce development, protect local tax dollars

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COLONA, IL – Last week, Colona City Council passed a local responsible bidder ordinance (RBO) in a 9-0 vote with Colona Mayor Donald Ropp casting the final vote.

A responsible bidder ordinance (RBO) is a resolution adopted into a public body’s procurement codes that specifies certain criteria that a contractor must meet in order to be eligible to perform work on behalf of that community. Ultimately, an RBO ensures that public projects are awarded to responsive and responsible contractors who employ skilled tradespeople, deliver the highest quality of work, and provide more taxpayer value than contractors who cut corners in the areas of training, labor, and safety.

“This is a big win for the entire Colona community,” said Indiana, Illinois, Iowa Foundation for Fair Contracting (III FFC) Regional Manager Andy Waeyaert. “Passing a Responsible Bidder Ordinance protects taxpayer dollars while spurring local economic growth and supporting good-paying jobs. Plus, the apprenticeship requirements in this RBO help create a highly trained workforce ready to partner with local businesses to meet the construction needs now and in the future. On behalf of the III FFC, we celebrate the passage of another RBO and thank Colona City Council and Mayor Ropp for their support in raising standards in the local construction industry.”

The Colona ordinance includes “5-for-5” apprenticeship language to encourage workforce development by requiring proof that contractors and subcontractors bidding on Colona public works projects are participating in US Department of Labor-approved apprenticeship training programs that have graduated at least five (5) apprentices in each of the past five (5) years for each of the construction crafts to be performed on the project.

III FFC was established to increase market share for responsible contractors, work opportunities for skilled craftsmen and craftswomen, and value for taxpayers. III FFC raises standards in the construction industry by advocating for responsible public policies that reward work, ensure business growth, and create broad-based prosperity. You can find out more about responsible bidder ordinances and the III FFC on our website at www.iiiffc.org.

FOR IMMEDIATE RELEASE: May 31, 2023

CONTACT: Jill Gigstad, III FFC, (815) 254-3332 EXT 6, jgigstad@iiiffc.org

Shapiro, Murphy announce partnership for labor law enforcement

Posted by National Alliance for Fair Contracting on

April 17, 2023

PHILADELPHIA – New Jersey Gov. Phil Murphy and Pennsylvania Gov. Josh Shapiro last week visited the International Union of Painters and Allied Trades (IUPAT) District Council 21 training facility in Philadelphia to tour the innovative center and announce their intention to form an interstate task force to address wage theft and worker misclassification in the two states.

The interstate task force will work to better foster the collaborative enforcement of each state’s labor laws, which include robust worker protections, while enabling healthy business competition between good actors.

New Jersey and Pennsylvania entered a regional memorandum of understanding agreement in 2019 to facilitate data sharing, joint investigations and cooperative referrals. Thursday’s commitment to a continued partnership between the two states bolsters those efforts and demonstrates Shapiro’s and Murphy’s ongoing focus on worker protections.

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Earlier in the day, the governors directed Rob Asaro-Angelo, commissioner of the New Jersey Department of Labor and Workforce Development, and Nancy Walker, acting secretary of the Pennsylvania Department of Labor & Industry (L&I), to ensure a continued partnership between the states, highlight specific opportunities the departments should pursue, and request the identification of key individuals within each agency to serve on the interstate task force.

“Cooperative efforts with our partners in Pennsylvania are crucial to bringing fairness to workers and businesses in our region,” said Asaro-Angelo. “This teamwork among states ensures consistent enforcement, and dissuades bad actors from exploiting workers on both sides of the Delaware River.”

“Worker misclassification is not a phenomenon that exists only in the construction industry or in large metropolitan areas. Law-abiding contractors are losing out on bids across the commonwealth, and workers in virtually every sector are losing out on rights and protections they’ve earned as an employee. Workers represented by unions are protected from misclassification, but too many workers are vulnerable to the exploitative actions of bad actors,” L&I Acting Secretary Nancy Walker said. “I look forward to continued collaboration with our partners in New Jersey to hold accountable those employers who think they can get away with cheating the system.”

In response to growing misclassification problems in New Jersey, Murphy issued Executive Order No. 25 on May 3, 2018, establishing an interagency misclassification task force to “promote fairness, fight against discrimination, and work to end unfair labor practices… that create an unfair advantage over companies that play by the rules and hurt our working families.” New Jersey has since been considered the “gold standard” for addressing worker misclassification. Similarly, the Pennsylvania Joint Task Force on Misclassification of Employees, created by Act 85 of 2020, made 15 recommendations to improve data sharing, strengthen compliance laws, and increase interagency collaboration, all of which are furthered by Thursday’s action.

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Maryland construction company owes the District money for trying to cheat its employees

Posted by National Alliance for Fair Contracting on

Author: Samantha Gilstrap
Updated: 8:07 PM EDT April 18, 2023

As part of the settlement, the company also agreed not to bid on or provide work under any D.C. government contracts for one year.

WASHINGTON — A construction company operating out of Washington, D.C. owes the District money after trying to cheat its employees out of sick leave and other employment benefits to which they were legally owed, according to the Attorney General’s Office.

Authorities say Maryland Applicators intentionally misclassified employees as independent contractors to avoid having to provide them with the proper sick leave and other employment benefits. Now, the company must pay $835,000 to the District.

As part of the settlement, the company also agreed not to bid on or provide work under any D.C. government contracts for one year, D.C. Attorney General Brian Schwalb said.

“Maryland Applicators denied District workers the sick leave and other employment benefits they had earned by misclassifying them as independent contractors rather than employees. This not only cheated the workers but gave Maryland Applicators an unfair advantage over their competitors who follow the law,” Schwalb said. “My office is committed to protecting District workers, ensuring they receive the wages and benefits they are legally owed, and leveling the playing field for all law-abiding District businesses.”

Maryland Applicators is a Maryland corporation that provides construction services on projects in Washington, D.C.

Authorities claim it employed dozens of misclassified workers and also secured the services of hundreds of additional misclassified workers through subcontracts with other companies.

The misclassification is as a form of wage theft that reduces costs for companies at the expense of employees, Schwalb said.

Authorities say misclassifying employees as independent contractors deprives them of rights that employees are entitled to, such as the minimum wage, overtime compensation, and paid sick leave.

Illegal misclassification also deprives the District of tax revenue, unemployment insurance premiums, and workers compensation contributions.

D.C. construction companies that misclassify workers unlawfully avoid at least 16.7% in labor costs compared to companies following the law, providing an unfair advantage over their competition.

As a result of the settlement, Maryland Applicators must:

  • Pay $835,000 divided as follows:
    • $489,000 will be paid to the District.
    • $346,000 will be paid to affected workers.
  • Change its practices to ensure that all workers hired for projects in the District are properly classified in compliance with District law and receive the wages and benefits they are legally owed.
  • Refrain from bidding on or providing work on contracts paid by the District government in the District for one year.

(See Article)