DOUGHERTY: Enforce the laws protecting workers (CO)

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BY MICHAEL DOUGHERTY
JAN 27, 2018

No one who works should be paid less than what they are owed. As Pueblo’s economy bounces back, protecting the workforce fueling our economy is now more important than ever. Colorado’s attorney general can and should play a key role in that vital effort because our labor force is the cornerstone of economic strength.

Other states have shown us the value of having an attorney general who enforces the rules and standards that guarantee basic employment rights. As attorney general, I pledge to engage the personnel and resources of my office to protect Colorado’s workforce.

Colorado’s workers are entitled to the right to be paid for a day’s work; the right to receive the minimum wage and any overtime pay or tips that are earned; the right to full payment of promised wages, without illegal deductions; and the right to have state and federal labor standards enforced.

As Coloradans, we have recognized how important these principles are. In 2016, Coloradans voted to raise the state’s minimum wage, with increases implemented over the next three years that far surpass the federal minimum wage — although it is still not enough for a lot of families. In 2014, the governor authorized the Wage Protection Act, giving the Colorado Department of Labor and Employment a better enforcement process to help employees who are denied their rightful wages. And last year, we passed a law requiring wage theft transparency, so that information is now available to the public about employers who are cited for stealing wages.

But there is much more to be done to ensure that our workforce is treated fairly. Coloradans are subjected to an estimated $750 million in wage theft every year. CDLE is on the frontline of this problem, handling the hundreds of individual wage complaints filed every year. But to truly advance fair treatment in Colorado’s workplaces, we need to take action on the broader problems affecting whole sectors of workers. Large portions of our workforce like those employed in the retail, restaurant, hotel and construction industries are particularly vulnerable to violations of labor laws.

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Two billion dollars in stolen wages were recovered for workers in 2015 and 2016-and that’s just a drop in the bucket

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EPI Report * By Celine McNicholas, Zane Mokhiber, and Adam Chaikof
December 13, 2017

What this study finds: In 2015 and 2016, a total of $2 billion in stolen wages ($880.3 million in 2015; $1.1 billion in 2016) were recovered for workers by the U.S. Department of Labor ($246.8 million in 2015; $266.6 million in 2016); by state departments of labor and attorneys general in 39 states ($170.0 million in 2015; $147.5 million in 2016); and through class action settlements ($463.6 million in 2015; $695.5 million in 2016). These represent wages stolen by employers who, for example, refuse to pay promised wages, pay employees for only some of the hours worked, or fail to pay overtime premiums when employees work more than 40 hours in a week.

Why it matters: Given that wage theft disproportionately affects workers from low-income households-who are already struggling to make ends meet-the loss of wages can be devastating. And these recovery numbers likely dramatically underrepresent the pervasiveness of wage theft-it has been estimated that low-wage workers lose more than $50 billion annually to wage theft. Regardless of what share of actual wage theft the recovery numbers represent, these data are one more reminder that wage theft is not isolated to a few bad employers, but affects workers much more broadly.

What can be done about it: Implement legislation to improve pay transparency; increase penalties for wage theft violations; support strong government enforcement of wage and hour laws; protect workers from retaliation when they report violations; and protect worker rights to collective and class action.

Introduction

The last four decades have been marked by rising wage inequality, with the vast majority of American workers experiencing wage stagnation while those at the top rung of the economic ladder reap the benefits of growth in productivity. These dynamics mean that many workers struggle to make ends meet; in 2016 one in fivefamilies in which at least one person worked were living below 200 percent of the federal poverty line (U.S. Census Bureau 2017).1 This situation is deeply exacerbated by wage theft, which continues to rob workers of billions of dollars in earned pay each year, with low-income workers being disproportionately affected (Bernhardt et al. 2009).

Wage theft occurs when employers fail to pay workers the full wages to which they are entitled for their labor. This includes, for example, refusing to pay workers the total amount of promised wages, not paying for time spent preparing a workstation at the start of a shift or closing up at the end of a shift, and not paying overtime premiums to workers who work more than 40 hours a week. Consider a full-time minimum wage worker earning the federal minimum wage of $7.25 an hour, around $15,000 per year. If this worker’s employer asks her to work 15 minutes “off the clock” before and after her 8-hour shift each day, that extra half hour of unpaid work each day represents a loss to the worker (and a gain to the employer) of around $1,400 per year, including the overtime premiums she should have been paid. This constitutes theft of nearly 10 percent of a minimum wage employee’s annual earnings-which can mean the difference between paying the rent and utilities or risking eviction or the loss of gas, water, or electric service.

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(Press Release)

(Full PDF of Study)

(IL) governor candidate Bob Daiber talks prevailing wage, right to work

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Prevailing wage, PLAs supported

By Kelsey Schulz
POSTED ON JANUARY 29, 2018

WOOD RIVER – Bob Daiber expressed his support of prevailing wage and project labor agreements, as well as his opposition to “right to work” laws, during a press conference in Wood River Monday.

Speaking at the Carpenters Union Hall, 277 E. Madison Ave., the Democratic candidate for the governor touched on those topics and more in front of a crowd that included 19 local labor leaders.

“As many of you know I’ve been a strong advocate for organized labor my entire political career,” said Daiber, who is also the Madison County Regional Superintendent of Schools. “I’m here today as a candidate for governor to continue my ongoing pledge to labor that we can move forward in this state collectively with good paying jobs.”

…

On prevailing wage: “I support prevailing wages, I always have. There’s no place in the workplace to drive down wages. If we do away with prevailing wages in the state then we are going to be competing with as to who as a worker is going to work for less and that is not a place that we want to go. When we have good jobs in the state that are based on prevailing wage we have workers that are being able to make a living wage and are less dependant upon the state for benefits and that’s the direction I want to move Illinois.”

On project labor agreements: “The project labor agreements are simply agreements between labor and management that help get jobs done on time, on budget with no shutdowns and workers being able to go to work each and every day without any work stoppages.”

On right to work: “Last year, I signed a pledge saying ‘no’ to right to work (for less) in the state of Illinois, because I am an advocate for collective bargaining both in the public and private sectors. As governor, I will sit down with AFSCME at the table and we will work out a contract for all state workers in Illinois because they too deserve to have good paying jobs and benefits.”

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Study shows prevailing wage led to more work done at a lower price (MI)

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By Erika Geiss
Jan 24, 2018

The word “Michigan” is practically synonymous with building and manufacturing.

From the auto industry that made our state famous to the “mighty” Mackinac Bridge that travelers still marvel at decades after its construction, our skilled tradesmen and women have driven us forward practically since statehood.

Yet we have trouble filling jobs in the skilled trades. It’s expected that Michigan will add 15,000 jobs in the professional trades every year through 2024, but we lack people with the training and experience to fill them.

One of the incentives these jobs offer is a good salary. That’s why it’s even more astonishing that special interests are trying to repeal Michigan’s prevailing wage law. These special interests, mostly contractors who hope to be able to pay their employees less, have worked to gather signatures to put the issue before the state Legislature or on the 2018 ballot.

Contrary to what you might have heard, the law doesn’t force companies to pay workers union wages or require that only union workers be hired for a construction job. It stipulates that for state-funded work projects, employees receive a pay rate based on a survey of actual wages and benefits in the area.

Studies suggest that if Michigan’s prevailing wage law is repealed, salaries for construction workers would drop by 20 percent to 50 percent. Just think about what it would be like to have your salary cut in half. Would you want to stay in that job? Most likely, you’d be looking for a new line of work. At a time when Michigan is trying to attract more skilled trades workers, repeal would be a terrible mistake.

…

Not only does prevailing wage ensure a good quality of life for people who choose these careers, it ensures that our roads and schools are built on time and on budget. It allows the workers to provide for their families and support local businesses while laying the groundwork – quite literally – for a well-built Michigan that will attract further investment.

We must protect Michigan’s prevailing wage law.

State Rep. Erika Geiss (D-Taylor) represents the 12th District.

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New Mexico Agrees to Strengthen Wage-Theft Enforcement (NM)

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By MORGAN LEE, Associated Press
Dec. 20, 2017, at 7:23 p.m.

SANTA FE, N.M. (AP) – A legal settlement has been reached to shore up New Mexico’s enforcement of laws against wage theft by employers who fail to pay or fully pay workers, a coalition of workers’ rights groups announced on Wednesday.

The settlement, if approved by a state district court judge, resolves accusation that the Department of Workforce Solutions failed to enforce provisions of the state’s Minimum Wage Act by improperly dismissing complaints, failing to pursue claims over $10,000 and not holding employers liable for damages.

It would require the Division of Labor Relations pursue more accusations of wage theft, make it easier for non-English speakers and others to file claims, and force negligent employers to pay back unpaid wages three-fold, the advocacy groups said.

New Mexico Center for Law and Poverty attorney Elizabeth Wagoner says more than 500 claims of wage theft are filed with the state each year. She estimated that state officials previously denied one out of every four complaints for improper reasons, while more claims were never filed because of administrative and language barriers.

…

The agency said some disputed policies and procedures have been in place since before Gov. Susana Martinez took office in 2011, without specifying which ones. Plaintiffs said the state failed to effectively enforce elements of a 2009 law designed to facilitate wage-theft investigations.

Provisions of the proposed settlement include:

-Lifting the $10,000 on claims of missing wages.

-Extends the statute of limitations for filing a claim from one year to three years.

-The Division of Labor Relations must seek damages on behalf of workers against employers.

-The state must provide Spanish-language claims forms and provide interpretation services for other languages.

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DA cracking down on wage theft by construction contractors (NY)

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By Priscilla DeGregory and Emily Saul
December 4, 2017 | 4:36pm

The city’s five district attorneys have agreed to crack down on wage theft by construction contractors – after an investigation revealed that more than $1.2 million in wages had been illegally withheld from workers.

The state Department of Labor has uncovered some 400 cases since it began looking into wage theft earlier this year. Nearly $700,000 has been returned so far, authorities said, and the investigation is ongoing.

“Every week, New Yorkers lose $20 million in unpaid wages. And every day, construction workers who risk their lives doing dangerous jobs have to wonder whether they’ll actually be paid for their work,” Manhattan DA Cy Vance said Monday.

Wage theft is one of the most pervasive problems in New York City and State, and in the construction industry in particular, workers are all too often preyed upon by their employers, who are able to steal millions of dollars in unpaid wages.

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Stiffed electricians get watt they deserve as sleazeball boss forks over $750G (NY)

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BY ANDREW KESHNER
NEW YORK DAILY NEWS
Wednesday, December 20, 2017, 2:37 AM

Five electricians got an early Christmas gift Tuesday in a check for more than $750,000.

The windfall was way overdue for the hard-working men who were stiffed out wages by a crooked boss.

Now that their greedy superior, Michael Riglietti, has a grand larceny conviction on his head, he’s finally opening his wallet to fully pay the men.

Acting Brooklyn District Attorney Eric Gonzalez and city Department of Investigation Commissioner Mark Peters presented the five checks.

The funds were the money the men deserved for their time on various public works jobs, including many schools. Though they were supposed to be compensated prevailing hourly wages around $50, they were getting a fraction of that – between $13.50 and $25 an hour.

“I am so happy to be able to hand you these checks, which were hard-earned and well-deserved and really will help make your holidays brighter,” Gonzalez said.

Riglietti, 50, pleaded guilty last month to grand larceny and his company, MSR Electrical Construction Company, once in Red Hook, copped to violating labor laws on prevailing wage requirements.

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New York Officials Battle Wage Theft in Construction Industry (NY)

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By LUIS FERRÉ-SADURNÍ
DEC. 6, 2017

For months, Ariel Ortega’s paychecks would bounce when he went to deposit them at his bank each Friday. He says he never saw the promised overtime pay for his extra hours on Saturdays remodeling a 12-floor apartment building in Brooklyn.

Mr. Ortega considered quitting. But when he voiced concerns, his boss, Michael Stathakis, would grow agitated and threaten not to pay the remainder of what he was owed if he quit, Mr. Ortega said.

“It was December, and it was cold, so it would be hard to get another construction job,” Mr. Ortega, who is owed hundreds of dollars in wages and overtime pay, said in Spanish. “I had to stick through it.”

Mr. Ortega, 30, was vindicated last week when his employer, Whisk Remodeling Corp., owned by Mr. Stathakis, pleaded guilty to fraud, admitting he failed to pay Mr. Ortega and dozens of other workers, many of them immigrants, more than $90,000 in wages.

Mr. Ortega’s case is not unique – and prosecutors in New York have taken note.

District attorneys in all five boroughs of New York City and in other counties, in coordination with state agencies, have ratcheted up efforts against wage theft in the construction industry. A string of indictments this year detailed more than $2.5 million in unpaid wages for more than 400 construction workers in Manhattan and beyond, Cyrus R. Vance Jr., the Manhattan district attorney, said at a news conference on Monday.

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Houston Is Being Rebuilt on a Foundation of Wage Theft (TX)

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The exploitation after the storm.

JANUARY 22, 2018
BY BRYCE COVERT

Pittsburgh City Council gave preliminary approval Wednesday to a measure that would require a $15 an hour minimum wage for employees of some contractors.

The bill would apply to companies in professional service contracts with the city over $100,000.

According to data from the City Controller’s Office, 31 contracts over $100,000 were approved in 2015. Most were related to construction projects, health care and software upgrades.

When the measure was introduced on Monday, Nov. 20, Mayor Bill Peduto said implementing it would have a minimal effect on the cost of contracts and the city’s finances.

“We want to work with companies that also believe a worker’s value should be a minimum of $15 an hour,” he said. “We are hoping this will be the standard for which Pittsburgh companies will recognize the worth of their workers.”

Peduto said this was the second part of a city wage plan that began in November 2015, when he signed an executive order to gradually increase minimum wage for city employees to $15 an hour by 2021. It’s currently $12.50.

…

Wage theft and safety violations were rampant in Houston’s low-wage construction industry even before the storm hit, according to local worker centers. One study found that 12.4 percent of construction workers in the city suffered injuries on the job. “The Texas construction industry is … incredibly dangerous,” says José Garza, executive director of the Workers Defense Project. “For years, the industry has absolutely failed to prioritize safety.”

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Federal contractor pays $200k in back wages to employees (WV)

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Dec 15, 2017
Charleston Gazette-Mail

A federal contractor has paid more than $200,000 in back wages to seven employees to resolve three violations of federal law.

B&F Contracting Inc. is the prime contractor for repair and renovation projects at federal buildings in West Virginia and Kentucky, according to a news release from the United States Department of Labor.

The company paid employees less than the prevailing wages required by law, failed to pay overtime to one employee, and failed to maintain required payroll records, according to
an investigation completed by employees in the department’s Wage and Hour Division.

Those actions violated the Davis-Bacon and Related Acts and the Contract Work Hours and Safety Standards Act.

The company paid approximately $213,282 in back wages to the affected employees, and all back wages have been paid in full, according to the news release.

“The resolution of this case helps to level the playing field for federal contractors who play by rules and must not be underbid by those who do not,” District Director John DuMont, who is based in Pittsburgh, said in the release.

In addition to the back wages, the company will hire a certified public accountant to oversee its compliance with federal laws and to provide the department with copies of certified payroll records and corresponding time records on a semi-annual basis for a one-year period, according to the release.

If the company commits another violation of the same labor laws, it will be debarred from bidding on federal contracts for three years after the violation.

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