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L&I fines 99 Tunnel subcontractor for failing to pay prevailing wage (WA)

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Glacier Northwest ordered to provide $370,000 in back pay

By Brandon Macz
2/28/19 12:12 pm

Washington’s Department of Labor & Industries has hit Glacier Northwest with more than $74,000 in civil penalties for reportedly failing to pay workers a prevailing wage for their work disposing of dirt during construction of Seattle’s new State Route 99 Tunnel.

Seattle Tunnel Partners tapped Glacier Northwest as a subcontractor for the project for an estimated $28 million, according to an L&I news release, and tasked the company with disposing of dirt and other materials excavated by the Bertha tunnel-boring machine.

“This was the only project that the Glacier Northwest disposal site was accepting dirt from, so L&I was able to identify the specific workers and hours worked,” the news release states. “Because the tunnel is a public works project, those workers are entitled to prevailing wages, which they did not get.”

The L&I investigation was prompted by a June 2016 complaint, and the labor department reports 46 Glacier Northwest employees were collectively deprived of $370,666 in prevailing wages for spreading around 2.2 million tons of dirt at the former Mats Mats Quarry near Port Ludlow.

Glacier Northwest and STP are appealing the decision by L&I to fine the subcontractor $74,133 and order those workers receive back wages.

The 46 operating engineers were owed a journey level rate of $48.49 per hour, time-and-a-half for overtime and hours worked on Saturdays, and double-time for hours worked on Sundays, according to L&I’s Notice of Violation issued last December.

The range for owed compensation is from nearly $90 to $30,572. Ten engineers are owed at least $20,000 in back pay, according to the Notice of Violation.

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Evers would eliminate ‘swap’ mandate for federal transportation money (WI)

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By: Nate Beck March 8, 2019

Gov. Tony Evers’ proposed budget would undo a bill passed during the Legislature’s lame-duck session that would concentrate federal money into fewer highway projects to curtail prevailing-wage requirements and other federal regulations.

The provision tucked into Evers’ biennial budget request would waive a requirement passed during the Legislature’s December extraordinary session calling for federal money to make up 70 percent of the funding of large highway projects, or highway rehabilitation jobs worth less than $10 million. Packing federal money into fewer projects has long been a goal for some GOP lawmakers, who argue that doing that will save money by decreasing the number of projects that fall under federal Davis Bacon prevailing-wage requirements and other rules.

“It is frustrating that Gov. Evers wants to repeal a pro-taxpayer reform in order to pay back the special interests who championed his election,” said Duey Stroebel, R-Cedarburg. “Allowing the DOT to spread federal funds across numerous projects only increases the number of projects subject to costly federal mandates. If Gov. Evers wants to win support for increased transportation taxes, proposals like this that reduce efficiencies are not a good way to make that case.”

Evers’ budget, which Republicans derided as a liberal wish list, would undo many of the laws that the GOP-controlled legislature passed in a lame-duck session just before he took over as Governor in early January. The budget would also reinstate a number of policies eliminated during the Walker administration, repeal the state’s right-to-work law and bring back prevailing wage on state projects.

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Evers takes aim at right-to-work law, seeks prevailing-wage protections (WI)

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By Michael Carroll
3-7-2019

Gov. Tony Evers has called for the repeal of Wisconsin’s right-to-work law and the restoration of prevailing-wage guarantees in public-works projects, despite critics’ concerns that those proposals could become a drag on the state’s economy.

The governor’s February budget blueprint supports the elimination of the state’s right-to-work statute, which restricts private employers from entering into agreements that compel union membership as a condition of employment or mandating the payment of dues to a labor union.

Evers also supports the restoration of the prevailing wage on state and local public-works projects to ensure that workers are not underpaid in comparison to employees performing similar tasks in the region.

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Restoring the prevailing wage would be helpful to both the construction industry and the employees who work in it, according to Emspak. Allowing companies with public-works contracts to pay their workers less than their counterparts in a region means those firms are undercutting the competition by cutting labor costs, which in turn drives down wages and working conditions, he said.

Having the prevailing wage in place means the construction companies would be in a better position to focus on providing high-quality, skilled work at a competitive cost, according to Emspak.

Labor union officials generally support Evers’ proposals. Stephanie Bloomingdale, president of the Wisconsin AFL-CIO, said Evers’ budget blueprint strikes the right note for workers and the state’s economy.

“The repeal of right to work is a step towards a healthier middle class with strong union rights,” Bloomingdale said in a prepared statement. “Restoring prevailing wage and the right to a project labor agreement will grow our economy with family-supporting jobs while ensuring tour construction projects are completed safely on time and on budget.”

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Gov. Wolf signs executive order to create Keystone Economic Development and Workforce Command Center (PA)

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BY KEVIN RANDOLPH  |   FEBRUARY 21, 2019

Gov. Tom Wolf signed Tuesday an executive order to create the Keystone Economic Development and Workforce Command Center, which will work to expand collaboration between government and the private sector to address the skills gap and worker shortages.

“Our economy is transitioning and it’s a race to keep up,” Wolf said. “We either strengthen workforce development or we risk falling behind. We must be bold and ambitious and break from the status quo.”

The command center will make recommendations to improve coordination of workforce and economic development programs across state agencies and identify barriers that may prevent people from working or prevent businesses from hiring skilled workers.

The command center will also review the recommendations of the Auditor General and implement those it believes will deliver the best results. It will also monitor implementation and progress of the workforce and education proposals outlined in the governor’s Statewide Workforce, Education and Accountability Program (SWEAP) proposal.

Wolf appointed three leaders from the private sector and three cabinet secretaries to lead the command center. They include Gene Barr, president and CEO of the Pennsylvania Chamber of Business and Industry; Tony Bartolomeo, co-chair of Team Pennsylvania; Rick Bloomingdale, president of the AFL-CIO; Acting Secretary Kathy Boockvar, Department of State; Secretary Dennis Davin, Department of Community and Economic Development; and Secretary Jerry Oleksiak, Department of Labor & Industry.

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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.

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‘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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