Contractor ordered to pay $100K in back wages for Hammond project (IN)

Posted by National Alliance for Fair Contracting on

Karen Caffarini – Post-Tribune
September 19, 2017, 8:55 pm

Back wages totaling $103,788 have been paid to 29 individuals who were underpaid while working on the Flagstone Village affordable housing project in Hammond, according to a federal agency.

Because the Flagstone Village was a U.S. Department of Housing and Urban Development project, the U.S. Department of Labor Wage and Hour Division said the prime contractor for the job, CRG Residential of Carmel, needed to incorporate the required Davis-Bacon and Related Acts and Contract Work Hours and Safety Standards Act stipulations into its subcontractors’s contracts.

According to a Department of Labor spokesman, Scott Allen, CRG was responsible for all violations and back wages owed because the subcontracts did not include these contract stipulations. Allen said subcontractors were not responsible for any wage violations on their part.

“Federal contractors owe it to taxpayers to comply with all applicable laws, including paying their workers fairly and fully,” said Wage and Hour District director Patricia Lewis, in Indianapolis. “Prevailing wage laws level the playing field for all contractors.”

Among those receiving additional compensation was a heavy equipment operator working for subcontractor Hubinger Landscaping in Crown Point, who was reportedly classified improperly, and thus paid at a lower rate than required, according to the Department of Labor.

The Wage and Hour Division also determined that CRG Residential failed to pay one employee for time spent transporting other workers to the job site at the start of the week and home from the job site at the end of the week. The company also classified the worker improperly and paid him a lower rate than required for his job classification when he was operating heavy equipment, according to the division.

(Read More)

LA Task Force Says “GAME ON” in Fight to Stop Misclassifying Workers (LA)

Posted by National Alliance for Fair Contracting on

10/26/17
WorkersCompensation.com

Baton Rouge, LA (WorkersCompensation.com) – It’s a hidden crime with thousands of unsuspecting accomplices, a multi-million dollar payroll, and an unfair business advantage to the bad guys. But a team of state and federal agencies are working together to tell companies that if they misclassify workers, then it is GAME ON.

GAME ON is the acronym for Government Against Misclassified Employees Operational Network, a unique task force found only in Louisiana. Partnering together are the Louisiana Workforce Commission (LWC)’s Unemployment Insurance and Office of Workers’ Compensation divisions and the Louisiana Department of Revenue, with cooperative agreements with the Internal Revenue Service and the U.S. Department of Labor’s Wage & Hour Division.

“We are putting companies on notice that misclassifying workers won’t be tolerated in Louisiana,” said LWC Executive Director Ava Dejoie. “The practice isn’t fair to the unsuspecting workers who are cheated out of critical benefits and protections, and it’s not fair to the thousands of businesses who ‘play by the rules’ but are undercut by companies that intentionally trim labor costs by misclassifying.”

Misclassification refers to a worker who by law is an employee, but is incorrectly classified as something other than an employee. Most misclassifications usually involve workers labeled as independent contractors.

The GAME ON task force has focused efforts on the industries historically known to use independent contractors to a large degree, namely construction, health care, hospitality, personal services and staffing companies.

(Read More)

House, Senate Democrats Move to Prevent Wage Theft (MI)

Posted by National Alliance for Fair Contracting on

Hardworking men and women deserve full amount they’ve earned

Monday, October 30, 2017

LANSING – House and Senate Democrats announced their plan to Prevent Wage Theft today to make sure workers get what they’ve earned. A report from the Economic Policy Institute earlier this year found that Michigan workers across all demographic groups are losing $429 million every year as a result of wage theft. It’s been almost 40 years since Michigan updated many of the state’s laws to protect workers’ pay.

“When we’re talking about nearly half a billion dollars being taken from workers’ paychecks illegally, it’s clear the system is broken,” said state SenatorJim Ananich (D-Flint). “These folks are playing by the rules and trying to provide for themselves and their families. We need to do right by them and bring our laws into the 21st century.”

Data from the EPI report show that 17 percent of low-wage workers in Michigan have experienced wage theft, which includes paying less than minimum wage, failing to pay overtime, working off the clock, confiscating tips, misclassifying employees as independent contractors, or even failing to pay workers at all. Earlier this year, FOX 17 reported the story of 24 West Michigan carpenters who hadn’t been paid $35,000 that a construction company owed them. They had bank accounts frozen, couldn’t afford family medical expenses and even lost their cars.

…

In addition to holding back Michigan’s workers and its economy by keeping hundreds of millions of dollars out of pocketbooks around the state, law-abiding businesses are at a disadvantage to the bad actors who increase their profits by stealing from their employees.

“When Michigan’s workers do better, our whole state benefits. Sadly, a handful of bad actors are holding us back to the tune of nearly half a billion dollars per year and our state isn’t doing enough to help,” said House Democratic Leader Sam Singh (D-East Lansing). “Democrats are stepping up to ensure that hardworking Michigan workers get what they earn and that everyone plays by the same rules.”

(Read More)

NYC establishes safety training requirements for construction workers

Posted by National Alliance for Fair Contracting on

October 4, 2017

New York – The New York City Council, after eight months of bill editing, on Sept. 27 unanimously approved legislation establishing construction safety training requirements and programming.

The bill was introduced in January in response to the high number of construction site deaths in the city – at press time, 40 since 2014, according to a New York Times report. The legislation was changed twice to satisfy stakeholders – including the city’s real estate board, independent contractors and immigration officials – who were worried that day laborers would not be able to afford the training. The bill was revised to include $5 million to help fund their training.

Fines of up to $25,000 will be levied on sites using untrained workers, and workers can keep working until December 2018 if they have at least 10 hours of training completed by March. Permits for work can be withheld or denied renewal if the employer cannot prove all workers on a project have the required training.

Also included in the legislation, which went into effect immediately:
  • Workers must complete between 40 to 55 hours of safety training. The Department of Buildings will control the administration of the hours.
  • Workers can satisfy their training requirement with completion of an alternative training program, but only if DOB allows it after comparing it to the bill’s established training program

(Read More)

Union workers win $76M from Midtown construction firm that used alter-ego company to skirt collective bargaining (NY)

Posted by National Alliance for Fair Contracting on

Ginger Adams Otis
NEW YORK DAILY NEWS
Thursday, September 21, 2017, 2:41 PM

A Midtown construction company accused of creating a bogus business to avoid union wages and union benefit payments has to cough up $76 million to the workers it cheated.
In a decision with potentially far-reaching consequences for city developers, Manhattan Federal Court Judge Colleen McMahon found that Navillus Tile fraudulently invented an alter-ego company to try and get around collectively bargained agreements it had with several major city construction unions.

The company also had one of its legitimate offshoot businesses act as a Navillus stand-in on a job it wanted to do non-union, the ruling found.

The collusion also involved real estate giant Related, one of the city’s most prolific developers.

It knowingly engaged with one of the alter-ego companies on its Upper East Side luxury development on 92nd St., Judge McMahon’s ruling said.

In her scathing, 95-page ruling delivered late Thursday after a three-year court battle, McMahon said that Navillus’ founder, Donal O’Sullivan had “perjured himself” more than once and noted that another company principal was “obviously lying” in some testimony.

…

The $76 million in back wages and contributions to health, pension and general welfare funds will be split between the Metal Lathers Local 46, Cement and Concrete Workers District Council, Cement Masons Local 780, the District Council of Carpenters and Teamsters Local 282.

They came together in 2014 to launch the complicated lawsuit against Navillus Tile, which had signed collective-bargaining agreements with all of them for a variety of jobs on construction sites.

(Read More)

Bonney Lake contractor fined for underpaying workers on public school projects (WA)

Posted by National Alliance for Fair Contracting on

by KOMO Staff
Tuesday, October 10th 2017

OLYMPIA, Wash. – A Bonney Lake contractor was fined $218,000 and ordered to pay out $210,000 in back wages after an investigation found it shorted employees for work on 10 public school construction projects, the state Department of Labor & Industries reports.

The company, I&C Northwest of Bonney Lake, and owner Jim Lingnaw, were cited for the unpaid regular wages and overtime, and for false reporting. The company owes also faces a prohibition from bidding on any public works projects.

The back pay was owed to nine who worked for I&C Northwest on the public school projects.

Jim Christensen, prevailing wage program manager for L&I, said the citations are based on the contractor’s continued violations of state law after the agency educated the firm on requirements for public contracts. The agency warned Lingnaw in January 2016 about receiving fines and disbarment after L&I uncovered the same violations on five other projects.

Investigations involving the company go back to at least 2014, said L&I spokesman Matthew Erlich.

“This case represents examples of repeated violations of the law,” said Christensen, who has more than a decade of experience handling prevailing wage issues. “Our investigation showed I&C falsified pay documents and shorted the workers on each project. This goes beyond a simple, honest mistake.”

(Read More)

Sen. Wirch’s bill takes aim at ‘wage theft’ (WI)

Posted by National Alliance for Fair Contracting on

RICARDO TORRES
Tuesday, October 26, 2017

MADISON – Whether it’s not being paid for overtime, forcing employees to work off the clock or violating minimum wage laws, wage theft is an issue for employees across the country and some new legislation in Madison is looking to reduce the problem.

State Sen. Bob Wirch, D-Somers, testified at a public hearing on Thursday in support of Senate Bill 371, which he hopes will have a positive impact for workers, if passed.

“The changes I am proposing are reasonable solutions that will address some of the legal loopholes that have allowed this practice to grow, level the playing field for the many business owners who play within the rules and take care of their employees,” Wirch said.

The proposed law would penalize employers who violate their workers rights starting with a $500 fine for the first violation, $750 for the second violation and $1,000 for every violation after that.

Wirch said he’s hoping to have bipartisan support for the bill and that it will be voted on before the end of the session

(Read More)

Understanding Low-Wage Work in West Virginia

Posted by National Alliance for Fair Contracting on

A Look at the People, Industries, Places, and Policies Affected by Low-Wage Work in West Virginia

September 8, 2017
Media Contact: Caitlin Cook

[Charleston, WV] – Poverty is a persistent problem in West Virginia, where tens of thousands of West Virginians live in poverty because their jobs do not pay a living wage. Read the full report.

This 10th annual State of Working West Virginia focuses on low-wage work, including demographics of those who do the work; the industries that employ them; geographic factors; the role of public programs supporting low-wage workers; and policy recommendations to improve economic well-being.

The report reveals the shifting role of low-wage work in the state’s economy, now its main source of job growth, and a path no longer confined to young workers entering the workforce. The complete picture of West Virginia’s economy shows growth in low-wage industries, while non-low wage industries decline, and wages stagnate for both.
“Low-wage work has a profound impact on West Virginia’s economy, from the capabilities of workers to provide for their families, to their health and well-being, all the way to the state budget,” said Sean O’Leary, Interim Executive Director for the West Virginia on Center on Budget and Policy. “As low-wage jobs become more prevalent in the state’s economy, we must consider public policies that support these workers and their families, recognizing their importance to the state.”

Key Findings

  • Twenty-three percent of the state’s workforce is employed in low-wage jobs.
  • Forty-four percent of West Virginia’s workers with less than a high school diploma earn low wages, while the rate of low-wage workers who possess a high school degree or some college is 28 percent.

(Read More)

(Full PDF of Report)

Will West Virginians get the highways jobs?

Posted by National Alliance for Fair Contracting on

By Brad McElhinny in News
October 05, 2017 at 3:35PM

CHARLESTON, W.Va. – Gov. Jim Justice says he wants a $1.6 billion road bond to stimulate West Virginia’s economy and create thousands of jobs.

As he’s been asked about the jobs during his tour of the state in support of the road projects, Justice has acknowledged he can’t guarantee all the jobs will be filled by West Virginians. But he always says he hopes as many as possible will go to state residents.

“We’re going to try to hire as many West Virginians as we possibly can to do the jobs. Hopefully we’ll end up hiring every job to be a West Virginian. But reality is, that won’t happen,” Justice said this week in Moorefield.

“I’ll tell you this, those contractors that are hiring people that aren’t from West Virginia, we will urge them to hire people who are from West Virginia. And on top of that, we’ll make sure that every dadgum tax dollar is collected. Every tax dollar.”

West Virginia voters go to the polls Saturday to approve or reject the road bond amendment. Polls open at 6:30 a.m. and close at 7:30 p.m. The Secretary of State’s office reported 37,434 voters participated in the early period that ended Wednesday.

…

The West Virginia Affiliated Construction Trades Foundation is a supporter of the road bond, but would like greater assurances of employing all West Virginians possible.

“The devil’s in the details,” said Steve White, director of the Affiliated Construction Trades. “He’s been able to push forward a major road building plan that we’ve needed for years.”

White would like to minimize the role of hope. He would like more specifics aimed at ensuring West Virginia contractors and construction workers have every opportunity to compete for the possible infrastructure jobs ahead.

(Read More)

Trump Administration Drops Local Hire Program That Would Have Employed Hundreds of Thousands of Americans

Posted by National Alliance for Fair Contracting on

SOURCE: JOBS TO MOVE AMERICA
AUG 25, 2017

The U.S. Department of Transportation announced, that effective on August 25, it will no longer support local hire programs in cities that receive federal grants.

The DOT announced this week that it is withdrawing a proposed revision of a rule that – since 1988 – has prohibited the use of geographic preferences in the expenditure of federal grant funds. This change will go into effect on August 25.

The proposed rule and accompanying local hire pilot program, originally drafted by the Obama administration in 2015, has allowed cities receiving federal grant funds to apply local hire policies to federally funded construction projects, so long as that language did not violate federal law. With this week’s announcement, the Trump DOT is officially signalling that it will no longer pursue that rule change.

Madeline Janis, executive director of Jobs to Move America, said: “This administration’s withdrawal of support for local job creation directly contradicts President Trump’s stated commitment to creating good jobs for people in this country. Many Americans continue to suffer from poverty and inequality and desperately need the opportunities that are created by our federal infrastructure and transportation investments. Why not give local communities the opportunity to benefit from taxpayer investment?”

“Local hire has allowed municipalities to use their own money to help employ people directly from their communities. It has been strategic for our elected leaders to say that they’re not going to raise our tax dollars for investments in capital projects without ensuring that persons facing significant barriers to employment get expanded access to good jobs and training opportunities,” said Erik Miller, executive director of Playa Vista Job Opportunities and Business Services.

(Read More)