Tri-State Labor Departments Form Alliance to Protect Workers and Employers (NJ, DE, PA)

Posted by National Alliance for Fair Contracting on

07/10/19
WorkersCompensation.com

Atlantic City, NJ (WorkersCompensation.com) – Labor departments from New Jersey, Pennsylvania, and Delaware signed a reciprocal agreement on Tuesday designed to better protect workers and employers through a newly established pipeline of information sharing and coordination of enforcement efforts.

This agreement grants new powers to each state, including strategic data-sharing, interstate case referrals, and joint investigations that will greatly impact wage claim investigations, worker misclassification, workplace safety efforts, and other labor-related compliance matters.

“All three states have been tasked with protecting our workers, and looking out for those businesses who play by the rules,” said Robert Asaro-Angelo, commissioner, New Jersey Department of Labor and Workforce Development (NJDOL). “This new cooperation agreement will ensure that those crossing state lines to do business are in full compliance with our laws, and employees are taking home every single penny they have earned.”

“Pennsylvania is proud to be part of this collaboration, which is truly a victory for workers and employers,” said Pennsylvania Department of Labor & Industry Secretary Jerry Oleksiak. “This agreement maximizes the use of existing tools by allowing for data-sharing, joint investigations, and referrals to ensure that workers are not taken advantage of and that there is a level playing field for all employers.”

“Delaware looks forward to working together with Pennsylvania and New Jersey to do the important work of protecting workers while fostering a fair environment for businesses to grow and prosper,” said Secretary of Labor Cerron Cade. “Companies who violate Delaware labor laws will no longer be able to hide behind state lines. We look forward to adding new states to this pact to preserve the dignity of work in Delaware and throughout the region.”

The signing took place in Atlantic City during a conference of the NJ State Building and Construction Trades Council, where Governor Murphy had spoken earlier about an expansion of NJDOL’s authority to combat worker misclassification.

Workers misclassified as independent contractors, as opposed to employees, are ineligible for the wage and overtime protections and benefits afforded to employees, and can find themselves underpaid and without basic labor and OSHA protections.

(See Article)

07cb7166-8673-4075-b213-0ffebae896c5

AG Nessel Joins Effort Urging Regulators To Protect Workers From Harmful Anticompetitive Labor Practices

Posted by National Alliance for Fair Contracting on

July 18, 2019 at 10:20 am

LANSING, Mich. – Michigan Attorney General Dana Nessel joined 17 other Attorneys General earlier this week in urging collaboration between Federal Trade Commission (FTC) regulators and state attorneys general to protect workers from anticompetitive labor practices that depress wages and limit job mobility and opportunities for advancement.

In a comment letter filed in connection with the FTC’s hearings on competition in the 21st Century, the coalition argues that the FTC should increase its focus on antitrust enforcement in labor markets and use their authority to crack down on non-compete and no-poach contract agreements-in addition to considering how workers are impacted by proposed mergers.

“In an era where wages continually decline and workers’ protections, like prevailing wage, are routinely stripped, we must begin reviving antitrust regulation in labor markets,” said Nessel. “We must do this to protect workers from harmful anticompetitive practices such as targeting low-income workers by forcing them to sign non-compete agreements and ultimately limiting their earning potential.”

Antitrust laws work to protect competition in markets, benefiting both consumers and workers. These laws typically work to prevent harmful practices such as monopolization, price-fixing and market allocation, which can result in higher prices, depressed wages, decreased supply of products, or lower quality products and services. State attorneys general and the FTC have a strong interest in protecting the competitiveness of markets and can work both independently and collaboratively to take enforcement action to stop antitrust law violations.

Recent labor related antitrust actions brought by state attorneys general have confronted restrictive contract agreements and proposed mergers. In fact, Nessel joined a multi-state lawsuit last month against the anticompetitive T-Mobile and Sprint mega-merger, where one of the main concerns is how potentially harmful it would be to thousands of hard-working laborers in the telecom industry across the nation. Nessel and the coalition also cited that the merger could result in substantial loss of retail jobs and lower pay for these workers in the near future.

In their comments, the attorneys general urge the FTC to consider the effect of non-compete, non-solicitation and no-poach agreements due to the limitations they impose on job mobility of workers by directly impacting their opportunity to seek better wages and/or opportunities. These agreements can also prevent competition amongst employers in offering suitable wages, benefits and work environments to obtain the best talent.

(Read More)

DeLauro reintroduces wage protection legislation

Posted by National Alliance for Fair Contracting on

Milford Mirror
Saturday, July 13, 2019

Congresswoman Rosa DeLauro (CT-03) and U.S. Sen. Patty Murray (D-WA) on July 11 reintroduced the Wage Theft Prevention and Wage Recovery Act, legislation that would crack down on employers who unfairly withhold wages from their employees, according to a press release from DeLauro’s office.

The bill would give workers the right to receive full compensation for all of the work they perform, as well as the right to receive regular paystubs and final paychecks in a timely manner. It would also provide workers with improved tools to recover their stolen wages in court and make assistance available to build community partnerships that enhance the enforcement of and improve compliance with wage and hour laws, the release said.

“The single biggest economic challenge of our time is that people are in jobs that do not pay them enough to live on,” DeLauro said. “People are struggling. And across the country, countless workers are putting in long hours and working for an honest day’s pay only to have their employers cheat them out of their hard-earned wages. That is inexcusable.

“The Wage Theft Prevention and Wage Recovery Act is comprehensive legislation that will strengthen current federal law and empower employees to recover their lost wages,” DeLauro continued. “Whether it is compensation for a day’s work, or overtime, employees should be paid what they earn. This legislation puts workers first while helping our economy grow.”

(See Article)

The Raise the Wage Act of 2019

Posted by National Alliance for Fair Contracting on

Milford Mirror
Saturday, July 13, 2019

This week, the House will vote on the Raise the Wage Act, legislation that will gradually increase the federal minimum wage for the first time in ten years. Since the minimum wage was first established, this has been the longest period of time without Congressional action to increase it. This legislation is a responsible approach to restoring the value of the wage. It will give nearly 40 million Americans a pay raise, lift millions out of poverty, and stimulate economic growth.

ABOUT THE RAISE THE WAGE ACT

The last minimum wage increase was enacted into law in 2007 and began to take effect in 2009. Since then, low-wage workers have been left behind. While many states have taken action to raise the minimum wage above the federal level, 56 million workers in 21 states are stuck at the federal minimum wage of $7.25 per hour, according to EPI. The minimum wage workers in those states have effectively suffered a 17 percent pay cut because of inflation over the last decade.

The Raise the Wage Act would gradually increase the federal minimum wage from $7.25 per hour to $15 per hour by 2025, which would raise wages and dramatically improve the quality of living for millions of American workers. The legislation also ensures that all workers earn at least the federal minimum wage by phasing out over time the subminimum wage for tipped workers, youth workers, and Americans with disabilities.

RAISING THE MINIMUM WAGE IS GOOD FOR WORKERS

The Raise the Wage Act:

  • Gives 27 million workers a raise, according to CBO;
  • Directly benefits the low- and middle-income workers who were disadvantaged by the GOP Tax Law that only benefited the rich;
  • Ensures that tipped workers will benefit from one fair wage, in addition to tips;
  • Eliminates the subminimum wage for young workers, which allows employers to pay employees under 20 an hourly wage of $4.25 for the first 90 calendar days of their employment; and
  • Changes the law to ensure workers with disabilities benefit from the minimum wage, rather than allowing employers and organizations to apply for special certificates to pay individuals with disabilities less than the minimum wage and less than the prevailing wage.

RAISING THE MINIMUM WAGE IS GOOD FOR FAMILIES

  • According to CBO, the Raise the Wage Act will lift 1.3 million of American out of poverty, including 600,000 children.
  • Also according to CBO, this bill will provide over 23 million women – many of whom are the primary breadwinners in their households – with a raise.

RAISING THE MINIMUM WAGE IS GOOD FOR BUSINESSES & THE ECONOMY

  • Raising the minimum wage will put money back in the pockets of workers, generating a collective $118 billion in additional income that workers will then invest back into their communities. [EPI, 2/5/19]
  • Gradually increasing the minimum wage over six years will give businesses time to plan and make any needed adjustments.
  • With a higher minimum wage deterring absenteeism, employers may benefit from reductions in worker turnover.

(See Article)

Noah Smith, Bloomberg Opinion: Solving the riddle of spiraling infrastructure costs

Posted by National Alliance for Fair Contracting on

NOAH SMITH Bloomberg Opinion
Jul 26, 2019

High construction costs pose a major threat to the U.S. economy. Not only are highways and transit systems irreplaceable for most Americans, they enable the free movement of people and goods within and between cities – the glue that holds together networks of domestic production.

Without smooth roads, solid bridges and well-functioning trains, supply chains break down, people can’t get to work and the whole economy gets gummed up. In the short term, the government can spend more, throwing money at the problem to keep infrastructure intact. But in the long run, high costs will make this option ever-less tenable. Eventually, local and state governments, and even the federal government, will balk at the price tag and simply let infrastructure fall into further decay.

The Bureau of Labor Statistics finds that productivity in the construction of infrastructure like highways, streets and bridges has fallen in recent years. Others find the situation even more dire. Economist Leah Brooks and law professor Zachary Liscow find that, between 1960 and 1980, the inflation-adjusted cost of building one mile of highway tripled in the United States. Rail systems are also expensive to build, especially when compared with other advanced countries.

Unfortunately, the cause of these high construction costs is a mystery. Many people, when confronted with the question, quickly reply that strong unions or the Davis-Bacon Act – which stipulates the wages federal contractors must be paid – are to blame. But the people who give this answer are incorrect. First of all, construction salaries simply aren’t particularly high.

France and other countries that build infrastructure much more cheaply than the United States are even more heavily unionized or covered by collective-bargaining agreements. Brooks and Liscow examine a number of different data sources and conclude labor prices in highway construction simply aren’t responsible for increased costs. Compensation has remained roughly constant in real terms, even as overall costs have exploded. They also find the cost of materials hasn’t gone up significantly.

Another usual suspect: land-acquisition costs. Unlike China, which kicks hapless peasants off their land whenever it wants to build a new megaproject, the United States’ constitutional system forces government to acquire land from private owners (though it can use eminent domain to limit the cost of acquisition and compel a sale). But Brooks and Liscow find that land costs are a relatively minor piece of highway construction costs, and that this share has not increased over time. Changes in eminent domain law also don’t seem to raise costs much. Nor, they find, do increases in planning costs explain much of the trend.

So if high U.S. costs aren’t due to expensive labor, land, materials or planning, what explains the enormous expense of building roads and trains? With the easy answers ruled out, the economic detectives investigating the cost mystery are looking at subtler factors.

(Read More)

unnamed

California Senate to Consider Sweeping Changes to Rules for Independent Subcontractors (CA)

Posted by National Alliance for Fair Contracting on

by Scott Braddock | July 10, 2019

After it passed the California Assembly earlier this year, that state’s Senate is set to begin hearings this week on a sweeping reform to the way employers classify their workers as either employees or contractors. Assembly Bill 5 would codify a landmark state supreme court ruling that raised the bar for when companies can legally classify folks as independent contractors.

Among other things, the court’s ruling says the scope of work being done must be outside the core of a company’s business for the workers to be classified as independent contractors. This is perhaps one of the most aggressive efforts in the country to crack down on what critics call employee misclassification or “payroll fraud.”

As Construction Citizen readers who have followed the issue are well aware, misclassification happens when employers pretend their workers are subcontractors when, by law, they meet the definition of employees and should be compensated as such including benefits. There are of course many legitimate uses of contract labor. The problem arises when unethical employers use the subcontractor designation to skirt the law and avoid payroll taxes, health benefits, retirement plans, and more. This allows those companies to underbid law-abiding firms by significant amounts. It is especially rampant in construction but other industries are not immune.

Explaining the California Supreme Court’s ruling in what has become known as the “Dynamex Decision,” attorney Timothy Kim wrote on Labor & Employment Blog: “In particular, the Court embraced a standard presuming that all workers are employees instead of contractors, and placed the burden on any entity classifying an individual as an independent contractor of establishing that such classification is proper under the newly adopted ‘ABC test.'”

In other words, this greatly narrows the conditions under which a worker can be classified as a contractor. And it is worth the attention of employers and workers in other parts of the country because large states like Texas and California often lead the way on policies that will eventually be adopted elsewhere.

The legislation under consideration mirrors the court’s ruling. Under the bill, the answer must be “yes” to each of the following for a worker to be legally classified as an independent contractor:

– The worker is free from the control and direction of the hirer in relation to the performance of the work, both under the contract and in fact;

– The worker performs work that is outside the usual course of the hirer’s business; and

– The worker is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed for the hirer

If the bill is passed by the Senate and signed by Gov. Gavin Newsom, hundreds of thousands of Californians stand to gain access to benefits they don’t currently enjoy. The proposal puts Gov. Newsom in a tough spot politically, though, because he would like to appear to be on the side of both the labor unions supporting the bill and the tech giants like Uber and others which do not.

(Read More)

San Jose Votes to Bolster Workforce Standards on City-Subsidized Construction (CA)

Posted by National Alliance for Fair Contracting on

By Grace Hase
August 6, 2019

Two years after workers helping to build San Jose’s Silvery Towers were released from literal slavery amid a criminal probe into their boss, local labor leaders secured stronger protections for builders on city-subsidized projects.

The City Council voted 9-2 Tuesday to expand rules that prevent worker exploitation on publicly subsidized projects. Among the new rules are requirements to hire more apprentices as well as local and underrepresented workers.

Council members Johnny Khamis and Dev Davis cast the dissenting votes.

San Jose will now require that workers who live locally put in 30 percent of the total work hours on a project covered by the ordinance. Construction companies must also use “good faith efforts” to hire “underrepresented workers as entry-level apprentices to perform 25 percent of the total apprentice hours.” The city defines an underrepresented worker as someone who receives government assistance, is at risk of losing a home or has survived labor trafficking, to name some examples.

Tuesday’s newly approved rules build on efforts that began before the month-long summer recess, when councilors passed a law that requires private construction companies to pay workers a prevailing wage on projects that benefit from city subsidies.

…

“This investment is in our workforce,” Arenas said. “We can’t have it both ways. I don’t want to stop development. I want to make sure we have housing, but I can’t have it on the backs of our laborers and our working poor.” She added: “We need to assure there are standards on pay and work for folks who need it. I feel that this is the way to get there while still honoring our goals around housing.”

Labor leaders, who had fought for the new protections for more than a year, were pleased with Tuesday’s decisions. Jean Cohen, a spokeswoman for UA Local 393, said that she was glad that all workers will now have equal protections.

“The building trades, the labor movement and the development community all have a shared goal, which is to build beautiful buildings for the city of San Jose,” Cohen told San Jose Inside. “There are many valuable components in the ecosystem of what it takes to develop a project, and these policies build a strong foundation for all interested parties, which is to have a vibrant and robust downtown.”

(Read More)

unnamed

Prevailing Wage Requirements Expanded To Private Construction Projects (CA)

Posted by National Alliance for Fair Contracting on

by Richard E. Donahoo
Posted on July 19, 2019
Construction Law Wage and Hour Law

The San Jose Mercury News reported recently that prevailing wage requirements were expanded by San Jose to certain private construction projects. Labor groups herald this decision as a step toward better labor protections.

The San Jose City Council voted in June to require prevailing wage pay from contractors getting subsidies from the city for their projects. There are exceptions to the new ordinance that came in the wake of the sentencing of Silvery Towers project contractor Job Torres Hernandez.

Exceptions to the new requirements include:

  • Some affordable housing projects
  • Certain land-use categories where construction is unlikely without a subsidy

Additional requirements such as local hiring are expected to come up again when the council is back in session. Labor groups are particularly interested in adding local hiring guidelines, apprentice programs and programs for hiring disadvantaged workers associated with downtown high-rise development.

Some business groups including Silicon Valley Organization backed the prevailing wage vote in order to advance the downtown development.

Read the full story in “San Jose expands prevailing wage requirements on private construction projects” …

Prevailing wage rates are set to ensure that workers are fairly compensated for their work and that a strong and skilled workforce remain in place to provide quality construction skills for local construction projects. Prevailing wage rates for specific construction trade classifications (i.e. Laborer, Carpenter, Iron Worker, Traffic Control Technician, Operator and Teamsters) in California are set primarily by the Department of Industrial Relations, and are applied to projects funded by the public and awarded to contractors by public agencies also referred to as the “awarding bodies.” These projects often are also subject to apprenticeship requirements.

(Read More)

SunCal Signs Project Labor Agreement with Building and Construction Trades For ‘6AM’ Development in Los Angeles Arts District (CA)

Posted by National Alliance for Fair Contracting on

by SunCal
Posted on Aug. 13, 2019
Construction Law Wage and Hour Law

LOS ANGELES, Aug. 13, 2019 /PRNewswire/ — SunCal, the developer of 6AM, planned to be a world-class, mixed-use development at 6th & Alameda in the heart of the Downtown Los Angeles Arts District, has entered into a Project Labor Agreement (PLA) with the Los Angeles/Orange Counties Building and Construction Trades Council and the unions they represent, it was announced today by SunCal and labor officials.

As envisioned, 6AM will be a mixed-use complex featuring live/work residences, creative offices, hotel and retail uses, and public gathering spaces on a 14.5-acre site. The project is currently proceeding through the entitlement process with the City of Los Angeles.

“We are very pleased to enter into this agreement with the Building and Construction Trades Council,” said David Soyka, Senior Vice President, SunCal. “This partnership between the developer and local, skilled construction workers will help ensure the project brings increased job opportunities and economic development to this area of Southern California.”

“The Building Trades are enthusiastic about contributing to the growth of the Arts District,” said Ron Miller, Executive Secretary, Los Angeles/Orange Counties Building and Construction Trades Council. “Together with SunCal, we’re bringing top-quality skills to this world-class project and enriching the LA economy by hiring union members who are LA residents.”

The 6AM development features a contemporary design by Herzog & de Meuron, one of the most acclaimed architects in the world and a winner of the coveted Pritzker Prize.

Inspired by the stark contrast between the vertical and horizontal in Los Angeles, the building design will be characteristic of the neighborhood which includes low and mid-rise warehouse buildings and narrow “in-between” passageways. The project will be located at the virtual center of the Arts District, and with the completion of the new 6th Street Viaduct, will become a gateway to the East; the Viaduct is also being constructed by the Building Trades.

The 6AM development program proposes: 1,305 rental apartments; 431 condominiums; 510 guest rooms in two hotels; 128,000 square feet of retail uses; 254,000 square feet of creative office space; a 29,000 square-foot school; and a 23,000 square-foot opportunity space. It is also planned to include two large open spaces; extensive integration of terraces and roof decks; and pedestrian-only open spaces, incorporating two major urban parks. Visually prominent at the complex will be two 58-story residential towers that respond to the shapes and scale of the Downtown skyline.

(Read More)

unnamed

Unlicensed subcontractor that installed sprinkler system kicked off Whiskey Row hotel project (KY)

Posted by National Alliance for Fair Contracting on

By JOE SONKA | August 6, 2019 4:35 pm

The Metro Department of Codes and Regulations issued a written warning on May 31 to a contractor working on the construction of a new twin hotel project on Whiskey Row downtown, declaring that it was violating state and city law by subcontracting an unlicensed company to install the hotels’ fire sprinkler system.

A spokeswoman from Louisville Forward also confirmed that the unlicensed subcontractor improperly installed the hotels’ sprinkler system, which was now being replaced by new contractors.

The 14-story twin hotels being constructed on First and Main streets are that of Hotel Distiland Moxy, a project of Indiana-based hospitality company White Lodging that is scheduled to open in November.

The Codes and Regulations administrative warning was sent to SimplexGrinnell – a fire sprinkler company that is a subsidiary of international giant Johnson Controls – which was the designated contractor permitted by the city to install the hotels’ sprinkler system, having received the proper licensing from the city and state.

However, the warning letter went on to state that the subcontractor hired by SimplexGrinnell to install the sprinkler system “did not hold any type of Kentucky Fire Sprinkler License,” adding that it is a violation of state law to have such a system worked on by someone other than the certificate holder.

The warning letter from Codes and Regulations executive administrator Paul Nicholson added that it was the department’s understanding that SimplexGrinnell “remedied the situation” and was now in compliance with the law, but warned that any further violations “may be subject to further action being taken, up to and concluding suspension of your current license with Metro Louisville.”

A Louisville Forward spokeswoman, Caitlin Bowling, confirmed to Insider Louisville that the unlicensed subcontractor was IMP Mechanical, a firm based in Fayetteville, Ga., and that some of its work on the fire sprinkler system was improper and had to be reinstalled.
Bowling said that Codes and Regulations is “making sure things are installed correctly and there are licensed workers,” adding that the department has been “working with the developers and contractors to make sure everything is in order.” She also stated that warnings are typically issued before formal citations for violating city and state codes, as it gives contractors an opportunity to rectify the problem.

Spokespersons for White Lodging, SimplexGrinnell and Johnson Controls have not yet replied to emailed questions for this article.

Thomasina Brown, a registered agent with IMP Mechanical, told Insider that she vigorously disagreed with the assertion of Codes and Regulations in the warning letter about the subcontractor having to be licensed in Kentucky, saying that since the company’s workers were independent contractors instead of employees, only Johnson Controls had to be licensed.

Todd Johnson, a local union organizer for the Road Sprinkler Fitters UA Local 669, told Insider that he and others warned state and city departments weeks before the Codes and Regulations letter in May, expressing concern about what he called untrained and uncertified workers improperly installing safety features at the behest of an unlicensed, out-of-state subcontractor.

In a May 15 letter to the Department of Housing, Building and Construction in Frankfort, the prominent Kentucky labor attorney Dave Suetholz wrote that IMP was committing “major code violations” that were under investigation by Metro Codes and Regulations after an informal complaint was submitted, asking the state department to assist in that effort.

(Read More)