Seattle worker-rights groups uniting to create ‘one-stop shop’ for workplace wrongs (WA)

Posted by National Alliance for Fair Contracting on

By: Benjamin Romano
August 3, 2018

Working Washington and the Fair Work Center, two organizations that have been as effective as any in recent years at expanding and defending the rights of workers in Seattle and beyond, are joining forces under a new executive director.

Rachel Lauter, most recently the deputy chief of staff to New York Mayor Bill de Blasio, assumed the role of leading both organizations in late May, a first step in a merger designed to create what she describes as “a one-stop shop for worker organizing, advocacy, outreach and education and legal services.”

That’s necessary, she said, because aggrieved workers or those looking to improve working conditions may not always know what kind of help they need or where to begin.

Working Washington got its start in 2011 organizing low-wage workers to push for the nation’s first $15-an-hour minimum wage, passed by SeaTac voters in 2013, and then by the Seattle City Council in 2014. The labor-backed group has run successful campaigns – often marked by attention-grabbing stunts and protests, online and off – for predictable shift scheduling, expanded sick leave, equal treatment and, most recently, expanded protections for domestic workers.

The Fair Work Center (FWC), meanwhile, formed in 2016 with a mission of educating workers about their rights in Seattle and beyond, offering legal aid and connections to groups advocating for specific communities such as immigrants and youth. It has been awarded more than $2.5 million from the city of Seattle’s Office of Labor Standards under a grant program designed to “develop awareness and understanding of worker rights, and facilitate resolution of labor standards violations.” According to its 2017 annual report, the legal clinic helped low-wage workers recover more than $350,000 resulting from wage theft, discrimination and harassment, retaliation and other violations.

(Read More)

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CONTRACTOR SENTENCED FOR CRIMINAL WAGE THEFT, FALSE REPORTING OF WORKERS’ COMP PAYMENTS (WA)

Posted by National Alliance for Fair Contracting on

By Office of the Attorney General (Washington State)
July 27th, 2018

Alejandro Sandoval and his company must pay back $25,000 in workers’ wages

SEATTLE – A Maple Valley contractor and his company must pay back more than $25,000 in unpaid wages in addition to unreported workers’ compensation insurance after a joint investigation by the Attorney General’s Office and the Washington State Department of Labor & Industries (L&I).

Alejandro Sandoval and his company, Sandoval Construction, were sentenced today in King County Superior Court after pleading guilty to false reporting and first-degree theft. As part of the plea deal, Sandoval Construction is ordered to reimburse the workers for their unpaid wages and Sandoval will be responsible for unpaid workers’ compensation insurance payments to the state.

Under separate civil proceedings, he owes L&I at least $197,000 in unpaid premiums, interest and penalties.

“Wage theft is a crime, and as long as I’m Attorney General, those that steal from their workers will be prosecuted,” Attorney General Bob Ferguson said. “Thanks to the coordinated efforts of my office and L&I, these workers will be paid for their work.”

“People work hard and deserve to be paid fully and on time,” said L&I Director Joel Sacks. “Teaming up with the Attorney General gives us the extra hammer of criminal prosecution to collect wages for workers and reduce workers’ comp costs for employers.”

L&I enforces workplace rights and administers the state workers’ compensation insurance system that helps injured workers heal and return to work. When employers cheat and fail to pay their fair share, those who follow the rules pay higher premiums.

The Attorney General’s Office began its criminal investigation in 2016 after L&I received complaints from a dozen workers for Sandoval and his company, alleging Sandoval Construction had not paid them $25,620 in wages that they were owed.

In addition, an L&I audit revealed that Sandoval had underreported his workers’ compensation payments to the state agency, despite deducting them from employee paychecks. The audit, which covered a sampling of four different quarters, found he owed more than twice what he reported to L&I in that timeframe.

(Read More)

OSHA increases excavation and trenching enforcement after wave of fatalities

Posted by National Alliance for Fair Contracting on

Kim Slowey
October 4, 2018

Dive Brief:

  • Effective Oct. 1, the Occupational Safety and Health Administration moved forward with an updated excavation and trenching National Emphasis Program. The safety enhancements represent a renewed effort on the part of the agency to prevent excavation and trenching collapses in the wake of an uptick in trenching fatalities.
  • The program’s goal has always been to make sure onsite trenching and excavation conditions are as safe as possible for workers, but the agency will now increase its education efforts and step up enforcement. In addition, OSHA inspectors will enter records of their trenching and excavation inspections into a national reporting system. Local OSHA offices will develop outreach programs as well.
  • OSHA will wait to increase its enforcement activity until after the first three months of the initiative, during which time the agency will engage in education and prevention outreach. Inspectors will still respond to accidents, complaints, injuries and referrals during the outreach period. The updated program will remain in effect indefinitely. “OSHA will concentrate the full force of enforcement and compliance assistance resources to help ensure that employers are addressing these serious hazards,” said Loren Sweatt, deputy assistant secretary of labor for occupational safety and health.

Dive Insight:

OSHA rolls out National Emphasis Programs on a temporary basis, although some, like the ones relative to construction cranes and lead, have been active for several years. The agency’s goal is to concentrate its resources on particularly high-hazard safety issues for as long as necessary. The decision as to which areas need the most attention is made after considering inspection, injury and illness data and other relevant information.

In the case of this latest emphasis program, the agency is likely responding to U.S. Bureau of Labor Statistics data that showed a steep rise in trenching fatalities in 2016. In March, the bureau reported that that the number of excavation and trenching fatalities in 2016 was almost twice the average of the previous five years combined. At the time, the Department of Labor committed to reducing excavation and trenching hazards by 10% by Sept. 30, 2018, using 2017 data as a benchmark.

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Measure Twice, Cut Once: Understanding the Construction Workplace Misclassification Act

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By: Susan Nanes
August 2, 2018

Measure twice, cut once. It’s a carpenter’s motto reminding us that it is better to spend a little more effort up front to be certain about what we’re doing than to have to spend time, money, and energy trying to fix a mistake after the fact. This article provides some background and basics of the Construction Workplace Misclassification Act (CWMA) so that attorneys practicing in the construction field will be aware of the pitfalls: should a construction employer seek to cut corners and avoid paying workers’ compensation premiums (and other required taxes), or even just err by calling its workers independent contractors, they may be subject to civil and even criminal penalties. It is better to take the time, do the due diligence and measure twice. This article will briefly explain the rationale for the CWMA’s enactment, address the previous legal approach, present the contours of the CWMA, and finally touch on Pennsylvania cases evaluating and applying the CWMA.

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Grand Theft Paycheck: The Large Corporations Shortchanging Their Workers’ Wages

Posted by National Alliance for Fair Contracting on

New research finds that a wide range of big corporations have been shortchanging the people who work for them

by Philip Mattera with a chapter on policy recommendations by Adam Shah
June 2018

Washington, DC-A new report finds that many large corporations operating in the United States have boosted their profits by forcing employees to work off the clock, cheating them out of required overtime pay and engaging in similar practices that together are known as wage theft.

The detailed analysis of federal and state court records shows that these corporations have paid out billions of dollars to resolve wage theft lawsuits brought by workers. Walmart, which has long been associated with such practices, has paid the most, but the list of the most-penalized employers also includes Bank of America, Wells Fargo and other large banks and insurance companies as well as major technology and healthcare corporations. Many of the large corporations are repeat offenders, and 450 firms have each paid out $1 million or more in settlements and/or judgments.

These are among the findings in Grand Theft Paycheck: The Large Corporations Shortchanging Their Workers’ Wages published today by the Corporate Research Project of Good Jobs First and Jobs With Justice Education Fund. It is available at www.goodjobsfirst.org/wagetheft

“Our findings make it clear that wage theft goes far beyond sweatshops, fast-food outlets and retailers. It is built into the business model of a substantial portion of Corporate America,” said Good Jobs First Research Director Philip Mattera, the lead author of the report.

(Read More – Press Release)

(PDF Copy of Full Report)

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Minnesota Wage Growth Exceeds Neighbors & Rest of United States (MN)

Posted by National Alliance for Fair Contracting on

Date: September 12, 2018
Author: Frank Manzo IV

Chicago: A trio of new research studies shows that more people are joining unions in Minnesota and that wages in the Gopher State are growing faster than the neighboring states of Illinois and Wisconsin, as well as in the rest of the United States.

Produced by the Midwest Economic Policy Institute with researchers from the University of Illinois at Urbana-Champaign, University of Minnesota, University of Wisconsin-Madison, and University of California-Irvine, the annual State of the Unions Research series profiles unionization rates and hourly wages in Minnesota, Illinois, and Wisconsin.

Based on data from the U.S. Department of Labor and U.S. Census Bureau, the studies offer a comparative window into the economic effects of different state-level approaches to labor and economic policy.

“While the rise of right-to-work laws and other national economic trends are no doubt impacting unionization and wage growth, differences in state-level policymaking can either accelerate or blunt these broader trends,” said Midwest Economic Policy Institute Policy Director Frank Manzo IV. “The data shows that Wisconsin’s model has produced lower wages and slower wage growth, while Minnesota’s has had the opposite effect.”

…

The reports highlight economic data over the last decade, at a time when Wisconsin opted for more austerity and weakened labor standards- specifically placing limits on collective bargaining (Act 10), repealing prevailing wage, and enacting a so-called “right-to-work” law.

Despite a budget crisis and efforts by its Governor to pursue an agenda similar to Wisconsin’s, the authors note that Illinois has largely maintained a status quo, augmented by the City of Chicago’s decision to raise its minimum wage.

(Read More)

(Report: State of the Unions – Minnesota)

(Report: State of the Unions – Wisconsin)

(Report: State of the Unions – Illinois)

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Historic community benefits agreement reached! (TN)

Posted by National Alliance for Fair Contracting on

September 4, 2018
Stand Up Nashville

Stand Up Nashville is very proud to announce that after several months of intense negotiations with Nashville Soccer Holdings (NSH), we have reached a landmark agreement that sets a new standard for development, including the following commitments:

Affordable Housing

  • 20% of all housing units built at the development site will be set aside as Affordable and Workforce Housing.
  • A commitment to 3 bedroom units that reflect the need for family housing in our city.

Wage Floor

  • NSH agrees to directly hire stadium workers (ushers, ticket takers, box office janitorial, custodial, maintenance, field maintenance employees) and pay them at least $15.50 an hour.
  • The establishment of a first-of-its kind targeted hiring program in Nashville with dedicated staff that will connect individuals with barriers to employment to future job opportunities at the stadium.

Community Services & Amenities

  • 4,000 sq ft will go to a childcare facility, which will operate on a sliding scale.
  • 4,000 sq ft will go to establishing micro-unit retail spaces for artisans and local small businesses at a reduced rental rate.
  • NSH will host annual coaching clinics for Metro School and other youth soccer coaches and donate soccer equipment to these programs.

Jobs and Workforce Development

  • Mandatory safety training for all construction workers and supervisors.
  • Leveling the playing field for responsible contractors that provide safe, thriving careers for their employees.
  • Construction careers for individuals with barriers to employment, especially from Promise Zones.
  • Inclusion of minority contractors.

Community Advisory Committee

  • A Joint Committee will be established with community representation. This Committee will oversee the implementation of the CBA, monitor successes, ensure compliance with the terms of the CBA, and produce an annual public report.

SUN remains steadfast in this fight and recommits ourselves to ensuring development benefits all Nashvillians. “For many Nashvillans, this marks the end of hopelessness and the beginning of a new and better Nashville. Housing our residents and improving conditions for workers is the responsibility of the people, the electorate, and developers,” said Odessa Kelly, Co-Chair of Stand Up Nashville. “We call on our elected representatives to ensure safe and just working conditions for the hardworking men and women who build this city. No developer should get such huge taxpayer subsidies and not be held to a high standard of providing a safe and dignified job to workers in our city.”

(Visit SUN’s website)

Council approves rules to encourage local labor on city construction projects (IL)

Posted by National Alliance for Fair Contracting on

By Crystal Thomas – Staff Writer
Posted Sep 5, 2018 at 12:01 AM

Springfield City Council members unanimously voted Tuesday to strengthen an ordinance that encourages contractors to have city residents work on at least half of the hours needed for city construction projects worth more than $100,000.

With the changes, contractors who don’t make any effort to hire locally can be barred from bidding on city construction projects for up to three years, and those that do use a crew made up of more than 50 percent local workers will be awarded.

The changes were made to a local labor ordinance passed in 2016. It fined contractors who failed to utilize enough Springfield workers on city construction jobs. If a contractor used no local labor, it could be fined up to 2.5 percent of the total bid – a $25,000 penalty on a $1 million construction contract.

Now, contractors can be rewarded using the same formula. If all Springfield labor is used on a construction job, the company would receive an additional 2.5 percent of the total bid.

Ward 3 Ald. Doris Turner called the amended ordinance the “carrot and stick approach” to hiring local.

Turner and Ward 1 Ald. Chuck Redpath met with city officials last week to hammer out the changes council members wanted to see after Langfelder proposed his changes more than a month ago.

Turner said she saw the ordinance as way to promote work and careers for local residents. It establishes that a contractor would need to be affiliated with an apprenticeship program and use more minority workers.

(Read More)

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Former Wessman Development LLC could owe Kimpton project workers more wages (CA)

Posted by National Alliance for Fair Contracting on

Amy DiPierro
Palm Springs Desert Sun
Published 10:53 a.m. PT
Sept. 10, 2018

Kimpton Hotel and other real estate developments in downtown Palm Springs are subject to a prevailing wage, a state agency has found, due in part to more than $140 million in city funding and projected tax rebates to the complex. The California Department of Industrial Relations’ determination means the developer of the projects could owe untold amounts of additional wages to workers who built the hotel and shopping district.

The DIR’s August 13 letter, which determined the downtown project is subject to prevailing wage, could sully a tony new development that city officials have hailed for revitalizing the downtown corridor, even after the original developer of the project was charged with allegedly bribing city officials for a sweetheart deal.

Palm Springs Promenade LLC, the limited liability company formed by Wessman Development to build the Kimpton and Virgin hotels as well as office and retail space, received $46 million in city funding and could receive an additional $100 million in potential transient occupancy tax refunds, according to a detailed review of city contracts by DIR.

The prevailing wage rate is the hourly wage paid to a majority of like workers on public works projects in the same place or labor market. Essentially, a prevailing wage is a minimum wage for specific types of workers, when they work on projects that benefit from public funds.

While some cities exempt publicly-funded projects from prevailing wage because of their benefits to residents, DIR Acting Director André Schoorl concluded in the agency’s determination that the downtown complex is not exempt, because the project is neither built, owned nor operated by the city and has the primary purpose of private profit.
“The city’s decision to subsidize the profit margin of (a) private landowner in the city’s downtown is not equivalent in purpose, scale, or function, to the purely municipal acts of building a local fire station or fencing for a reservoir,” Schoorl wrote.

The DIR determination means construction workers that built the Kimpton and other downtown structures could get a boost if wages are found to be owed. Workers and other interested parties may file a complaint with DIR, according to the agency, which would then trigger an investigation into whether workers have already received the correct prevailing wages or not.

…

California charter cities can pass laws exempting locally-funding public works projects from state prevailing wage law if they are deemed to be purely “municipal affairs,” like a fire department or library.

But in an August 13 letter, DIR Acting Director André Schoorl noted the hotel and shopping development built by Palm Springs Promenade “has no such obvious public purpose” that would make it exempt from paying prevailing wage. And while the city sought to incentivize developers to invest in blighted properties downtown, Schoorl concluded construction in downtown Palm Springs “was primarily undertaken for private benefit and profit, with a subsidiary goal of removing blight.”

…

The Center for Contract Compliance, a nonprofit labor advocate founded by contractors unions, in January 2017 requested DIR review whether the downtown project is subject to prevailing wage.

Although DIR determinations do not set a precedent – meaning it is advice given to a specific project, not a precedent applying to subsequent cases – Center for Contract Compliance Executive Director Branden Lopez said the reasoning in the Palm Springs Promenade case could apply to other jobs, too.

“The reasoning in the case, it applies statewide if they have similar facts,” he said.

Multiple cities in California have subsidized proposed hotel developments on a case-by-case basis. Additionally, according to research commissioned by the city of Long Beach in May 2017, at least five cities and one county in California, including Cathedral City and Palm Springs, have formal economic incentive programs for hotels.

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Does ‘right to work’ imperil the right to health? The effect of labour unions on workplace fatalities

Posted by National Alliance for Fair Contracting on

Michael Zoorob
Department of Government, Harvard University

Abstract

Objective – Economic policies can have unintended consequences on population health. In recent years, many states in the USA have passed ‘right to work’ (RTW) laws which weaken labour unions. The effect of these laws on occupational health remains unexplored. This study fills this gap by analysing the effect of RTW on occupational fatalities through its effect on unionisation.

Methods – Two-way fixed effects regression models are used to estimate the effect of unionisation on occupational mortality per 100,000 workers, controlling for state policy liberalism and workforce composition over the period 1992-2016. In the final specification, RTW laws are used as an instrument for unionisation to recover causal effects.

Results – The Local Average Treatment Effect of a 1% decline in unionisation attributable to RTW is about a 5% increase in the rate of occupational fatalities. In total, RTW laws have led to a 14.2% increase in occupational mortality through decreased unionisation.

Conclusion – These findings illustrate and quantify the protective effect of unions on workers’ safety. Policymakers should consider the potentially deleterious effects of anti-union legislation on occupational health.

(Read More)

(PDF Copy of Report)