Demolition Company Operators Sentenced In Manhattan Federal Court For Scheme To Underpay Employees In Violation Of Federal Prevailing Wage Law

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Preet Bharara, the United States Attorney for the Southern District of New York, announced that JOVER NARANJO, the owner and president of Enviro & Demo Masters, Inc. (“Enviro”), and LUPERIO NARANJO, SR., a foreman for Enviro, were sentenced today in Manhattan federal court to six and four years in prison, respectively, for perpetrating a scheme to underpay employees in violation of the federal prevailing wage law and for tampering with witnesses and using other people’s identities to further this scheme. Both defendants were convicted in November 2013 after a two-week trial before U.S. District Judge Jed S. Rakoff, who imposed today’s sentences.

 

Manhattan U.S. Attorney Preet Bharara said: “Today’s sentences ensure Jover Naranjo and Luperio Naranjo, Sr., will pay a steep price for underpaying their staff, abusing federal funds, and then lying to cover it all up – loss of their liberty.”

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$150M available to states to implement or expand job-driven training programs for laid-off workers

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WASHINGTON – The U.S. Department of Labor today announced the availability of up to $150 million in funding through a new Job-Driven National Emergency Grant program to train workers who have lost their jobs through no fault of their own for jobs in high-demand industries.

These investments will help create or expand employer partnerships that provide opportunities for on-the-job training, Registered Apprenticeships or other occupational training that results in an industry-recognized credential. Funding will also be used to provide services, such as coaching, counseling and direct job placement, that help connect laid-off workers, including the long-term unemployed, with available jobs. Focusing funding on proven, job-driven training strategies is a key component of the Obama administration’s agenda to connect ready-to-work Americans with ready-to-be-filled jobs.

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Manafort fined $2.4M for minority-contractor breach

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Plainville contractor Manafort Brothers Inc. will pay a $2.4 million federal fine and undergo independent monitoring for lying about its use of minority contractors on a state highway project, authorities say.

The Connecticut U.S. Attorney’s office and other state and federal investigators announced Monday Manafort’s agreement to settle its role in a criminal and civil probe into the corporation’s misconduct surrounding the relocation of Route 72 in Bristol, work that dated to April 2007.

According to investigators, Manafort admitted lying to the state Transportation Department about its use of socially and economically disadvantaged contractors for its $39.7 million roadwork contract.

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Harkin Statement on Senate Approval of David Weil to Serve as Administrator of the Wage and Hour Division at the Department of Labor

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WASHINGTON, D.C.-Today, Senator Tom Harkin (D-IA), Chairman of the Senate Health, Education, Labor, and Pensions (HELP) Committee, issued the following statement after the Senate approved David Weil to serve as the Administrator of the Wage and Hour Division at the U.S. Department of Labor. Weil was approved by the Senate HELP Committee in January 2014.
“The Wage and Hour Division is a relatively unknown agency, but it plays a huge role in how Americans experience their day-to-day working lives.  It ensures that people are paid fairly, it protects vulnerable children from abusive child labor, and it ensures that workers can spend time with their families when a new baby arrives or a health crisis is looming.  I can think of no one better to lead the Division than Dr. David Weil,” Harkin said.

Obama Seeks Wage Transparency With Executive Orders

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President Barack Obama will commemorate Equal Pay Day on Tuesday by signing two executive orders aimed at achieving pay equity among federal contractors, which make up an estimated one-quarter of the U.S. workforce.

The first executive order will prevent federal contractors from retaliating against employees who discuss how much money they make, as many employers have contracts prohibiting workers from disclosing information about their salaries, White House officials said during a conference call with reporters on Monday. The second executive order involves requiring federal contractors to disclose compensation data to the Department of Labor to increase transparency on payment for women and minorities, Betsey Stevenson, a member of the White House Council of Economic Advisers, said during the call.

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Maryland becomes second state to set minimum wage to $10.10/hour

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Following Connecticut’s lead, Maryland became the second state to raise its minimum wage to $10.10 an hour Monday, the mark set by President Obama in his push to persuade Congress to set that standard nationally.

By an 87-47 vote, Maryland lawmakers approved a wage hike from the federally-mandated $7.25 an hour to $10.10 an hour by July 2018 – two years later than Gov. Martin O’Malley advocated. The hike will be achieved in five incremental raises, starting with a jump to $8 an hour on Jan. 1, 2015. Counties can vote to set their own minimum wage even higher.

In a statement, O’Malley congratulated lawmakers “for giving so many Maryland families the raise they deserve.” It had been a top legislative priority for the Governor in his final term.

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Construction poised to be CT’s growth industry

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Construction will lead Connecticut’s industries in job growth over the next 10 years, economists and labor analysts say.

The industry hit hardest by the Great Recession is poised for a strong rebound this year and beyond as public projects move forward and the backlog of private projects built up during the economic downturn starts to clear, said Andrew Condon, director of the state Department of Labor office of research.

“It is coming back, but it is coming back from a very big fall,” Condon said. “You have to put that in context because construction was coming from a very low place.”

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NYC: Firms building city-backed affordable housing repeatedly caught cheating workers out of wages

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Last week, Mayor de Blasio promised to “lift up working families” with soon-to-be built affordable apartments the city is sponsoring on a vacant lot in Brownsville, Brooklyn.

 But at an affordable housing project a few blocks away, builder MDG Design and subcontractor F. Rizos, settled federal wage-cheating charges in April 2013 by agreeing to pay $960,000 in back wages.

Just one month later, MDG was hit with more wage-cheating charges on another city project, this time for $4.5 million in back wages, a city record.

Yet MDG was chosen by the former Bloomberg administration that very month to turn a city-owned warehouse in Williamsburg into 55 affordable apartments and stands to build hundreds more in the coming years.

Many taxpayer-funded developments in New York City require contractors and their subcontractors to pay “prevailing wages.” Some contractors jump through hoops to avoid this.

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California Truckers Will Be Paid $2.2 Million in Misclassification Case

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Pacer Cartage, a California logistics company, is being ordered to pay more than $2.2 million in back pay to short-haul truck drivers it illegally misclassified as independent contractors, Think Progress reports. The California Labor Commissioner’s Division of Labor Standards Enforcement says that the company knew or should have known that the drivers were employees and not contractors and Pacer is required to pay restitution, attorney’s fees and interest.

Misclassification is a tactic corporations engage in to try to exempt themselves from having to comply with the Fair Labor Standards Act, minimum wage laws and other laws protecting workers. If employees are classified as private contractors instead of employees, they are excluded from coverage under many labor laws and can be paid less. The truckers, for instance, were not paid by Pacer for time spent doing things like waiting at a port to pick up a load or for reimbursement of job-related expenses.

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Redmond Contractor Fined For Wage Violations, Barred From Public Contracts

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State labor regulators ordered a Redmond contractor to pay $13,600 in penalties, after concluding the company violated prevailing wage laws.

The Oregon Bureau of Labor and Industries also barred Hard Rock Concrete Inc. and the company’s president from public works projects for three years.

The labor agency announced the penalties Friday. Hard Rock Concrete president Rocky Evans has not yet responded to a message left by The Oregonian regarding the penalties.

Investigators found that seven Hard Rock Concrete contractors were underpaid roughly $8,900 for concrete work at Hillside Elementary School in Eagle Point. The business did a poor job of keeping records and filed incorrect payroll data, according to the state.

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