U.S. Increases Scrutiny of Employee-Stock-Ownership Plans

Posted by National Alliance for Fair Contracting on

The federal government is stepping up scrutiny of how U.S. companies are valued for employee-stock-ownership plans, a vital source of retirement savings for millions of workers.

Some owners are selling stakes in their companies to employee-stock-ownership plans at inflated prices, the government says, jeopardizing those savings.

The Labor Department is the plaintiff in 15 lawsuits related to employee-stock-ownership plans, with “virtually all” the cases alleging shoddy estimates of what a company’s shares are worth, said Timothy Hauser, a deputy assistant secretary at the agency’s Employee Benefits Security Administration.

“Valuation is the first, second, third and fourth problem,” Mr. Hauser said. In March, Labor Secretary Thomas Perez told lawmakers that some appraisals “have been deliberately inflated,” comparing them to real-estate-bubble-era home appraisals that “masterfully came in at what you needed.”

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16th Annual NAFC Conference Registration

Posted by National Alliance for Fair Contracting on

The National Alliance for Fair Contracting will be holding its 16th Annual Conference this year in the lakeside city of Chicago, IL, September 17-19, 2014.

The NAFC Conference provides a national forum for those committed to combating noncompliance of state and federal public contracting laws and draws attendance from contractors, labor unions, fair contracting organizations, attorneys and various officials from local, state and federal governments around the nation.

This year’s conference will be hosted at the Sheraton Chicago Hotel and Towers. NAFC Chairman Rocco Davis and the rest of NAFC’s Board of Directors are diligently planning content and speakers to ensure this will be our most successful conference to date.

Register Now

Nashville Drywall Firm To Pay State’s Largest Worker Misclassification Fine

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A $300,000 fine for misclassifying construction workers may be having a deterrent effect, according to officials with the Tennessee Department of Labor. The penalty was the largest to-date in a statewide crackdown on labeling full-time employees as contract workers.

TJ Drywall of Nashville was doing $2 million a year in business but only paying five percent of what regulators say they should have been in workers comp and unemployment insurance premiums.

The Labor Department’s Scott Yarbrough says the practice remains rampant in the construction industry.

“It upsets me when somebody who is following the rules – paying their insurance, paying their taxes like they’re supposed to. And they’re trying to compete with people who aren’t withholding any of that or paying for any of the benefits for somebody who is in fact an employee.”

Building Trades Unions Combine Efforts to Pass Responsible Contractor Legislation

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When it comes to public construction projects in Minnesota, the law says that the lowest responsible bidder gets the job. What constitutes a “responsible bidder” wasn’t clearly defined in the law, however.

Too often, unscrupulous contractors skirt the law to win bids on taxpayer-funded projects. During the recent legislative session, the unions of the Minnesota Building & Construction Trades spearheaded an effort to rectify this, culminating in passage of a bill establishing criteria that contractors must meet when they submit bids to state or local governments.

A bi-partisan effort, with authors from both the Democrats and Republicans, the bill passed the House 84-38 and the Senate 59-0 and was signed into law by Governor Mark Dayton.

“The Trades were frustrated that unscrupulous bidders were being awarded public contracts on all sorts of jobs,” said Kyle Makarios, director of Government Affairs for the Regional Council of Carpenters and leader of the lobbying effort. “We put our heads together to come up with a mechanism to fix the problem.

California Truck Drivers Go On Indefinite Strike

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More than 120 truck drivers who haul consumer goods from the ports of Los Angeles and Long Beach to retail warehouses launched an indefinite strike on Monday, according to MSNBC, escalating a tumultuous multi-year union organizing effort among the drivers. The consumer brands whose supplies could be affected by the strikes include Skechers shoes, Ralph Lauren, Walmart, and Home Depot, according to a press release from strike organizers.

The core complaint underlying the union drive is that companies like Total Transportation Services, Inc. (TTSI), Green Fleet Systems, and Pacific 9 Transportation deem their drivers “independent contractors” in order to avoid paying overtime and prevent their workers from enjoying various other labor law protections. The drivers say they are misclassified and should be treated as full employees, and have begun to flood the California Labor Commission with wage theft complaints in order to fight the misclassification and seek the pay that the “independent contractor” label has cost them over the years.

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AISD Adopts Davis-Bacon Prevailing Wage Schedule, Plans to Conduct Living Wage Floor Study

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In a split vote at its June 16 meeting, Austin ISD’s board of trustees adopted the federal Davis-Bacon prevailing wage schedule as the schedule AISD uses to pay construction workers, and the board pledged to conduct an additional study to determine a living wage for workers.
Pipe fitters, laborers and representatives from Austin Interfaith and AISD employees union Education Austin urged the board to adopt Davis-Bacon and stop using what they called an outdated wage rate schedule, while others called Davis-Bacon “flawed” and asked the board to postpone the vote.

Kayvon Sabourian, an attorney with the Austin nonprofit Equal Justice Center, has said the state allows school districts two options-adopting federal wage rates or conducting a wage rates study. The board in January approved a consent agenda item to put its own study in place, and AISD currently uses wage rates based on a study conducted in 2005, he said.

Sabourian told the board he has represented construction workers whose prevailing wage rates have been violated on AISD projects.

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Report: CT Healthcare Construction Most Active in New England

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Hospitals and other healthcare providers are spending more money on major Connecticut construction projects than in any other New England state, according to a study by Revista.
Ongoing and upcoming hospital and medical office building construction projects this year have a total construction value of $1.76 billion, the Maryland-based healthcare construction data provider said.

That’s ahead of Massachusetts’ $1.15 billion worth of ongoing and upcoming projects, as well as Maine’s $337 million and New Hampshire’s $124 million, Revista said.

Leading the way in Connecticut is the $450 million replacement of Stamford Hospital, which broke ground last year. Next up is UConn Health Center’s patient tower and $203 million outpatient pavilion, and John Dempsey Hospital’s $163 million expansion – all in Farmington.

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Seattle Approves $15 Minimum Wage, Setting a New Standard for Big Cities

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SEATTLE – The City Council here went where no big-city lawmakers have gone before on Monday, raising the local minimum wage to $15 an hour, more than double the federal minimum, and pushing Seattle to the forefront of urban efforts to address income inequality.
The unanimous vote of the nine-member Council, after months of discussion by a committee of business and labor leaders convened by Mayor Ed Murray, will give low-wage workers here – in incremental stages, with different tracks for different sizes of business – the highest big-city minimum in the nation.

“Even before the Great Recession a lot of us have started to have doubt and concern about the basic economic promise that underpins economic life in the United States,” said Sally J. Clark, a Council member. “Today Seattle answers that challenge,” she added. “We go into uncharted, unevaluated territory.”

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US Labor Secretary Thomas E. Perez Announces Proposed Rule to Raise the Minimum Wage for Federal Contract Workers

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WASHINGTON – Fulfilling President Obama’s commitment to make 2014 a year of action to strengthen the economy and grow the middle class, U.S. Secretary of Labor Thomas E. Perez today announced a proposed rule raising the minimum wage for workers on federal service and construction contracts to $10.10 per hour. The proposed rule implements Executive Order 13658, which was announced by the president on Feb. 12.

“A core American value is that hard work should be rewarded with fair pay. And as the president said in his State of the Union address, if you cook our troops’ meals or wash their dishes, you shouldn’t have to live in poverty,” said Secretary Perez. “Raising the minimum wage for workers on federal contracts will provide a much needed boost to many who are working hard, but still struggle to get by, and it will also benefit taxpayers with improved employee retention and productivity. Today the department took an important step toward making the promise of the executive order a reality for thousands of workers.”

“In America, nobody who works full time should have to raise their family in poverty,” said White House Domestic Policy Director Cecilia Muñoz. “President Obama is leading by example, raising the minimum wage for federal contract workers, and governors, mayors and businesses around the country are answering the call to join him. Now it’s time for Congress to finish the job and raise the wage for everyone.”

US Department of Labor’s OSHA Cites Duce Construction for Failing to Protect Employees from Trench Dangers

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SAVOY, Ill. – The U.S. Department of Labor’s Occupational Safety and Health Administration has cited Duce Construction Co. with four safety violations, including three serious and one willful, for failing to protect workers from trenching hazards at a job site on East Airport Road in Savoy. OSHA opened the February 2014 inspection under theNational Emphasis Program for trenching and excavation. Proposed penalties total $59,500.

“It is unacceptable for Duce Construction to allow workers into an unprotected trench. Each year, trench collapses result in numerous deaths and serious injuries,” said Thomas Bielema, OSHA’s area director in Peoria. “Employers that specialize in this type of work must take all necessary precautions to ensure their employees have safe working conditions.”

There were two trench boxes used in the excavation. Workers were exposed to soil avalanching and cave-in hazards because the company failed to ensure that the boxes were used correctly. A willful violation was cited for failing to ensure workers were protected from these hazards. A willful violation is one committed with intentional, knowing or voluntary disregard for the law’s requirements, or with plain indifference to worker safety and health.

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