Davis-Bacon Wage Survey Plan

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USDOL News – April 20, 2022

The U.S. Department of Labor’s Wage and Hour Division announces its Davis-Bacon Wage Survey Plan set to begin in 2022. Construction workers working on Davis-Bacon and related Acts (DBRA) covered contracts must be paid prevailing wages, which are determined by surveys of wages paid on construction projects underway or recently completed within a geographic area.

As the Wage and Hour Division begins its wage survey process, we are reaching out to contractors, contracting agencies, unions, and others in the construction industry to ensure that all stakeholders have an opportunity to participate in the wage survey process.

The division is planning wage rate surveys for Highway construction in:

  • Florida
  • Georgia
  • New Hampshire
  • West Virginia

The division is also planning wage rate surveys for Building construction in:

  • Maine

The division is also planning wage rate surveys for Building, Heavy, Highway, and Residential construction in:

  • Guam

Stakeholders can find the list of 2022 currently planned surveys here, as well as the status of surveys that are currently in progress.

The criteria used to determine areas where a survey should be performed are:

  1. Age of the previous survey
  2. Federal procurement agency plans for construction
  3. Whether stakeholders have requested a new survey of a construction type in a state or locality
  4. Whether public and private data reviews show wages in a locality have sufficiently changed to warrant a new wage determination

The Wage and Hour Division will provide outreach in each survey area to inform stakeholders how to participate in the survey process.

If you have suggestions regarding geographic areas and construction types that you believe should be considered for the 2022 or 2023 Survey Plan, please send your suggestions via email to DB-Wage-Survey-Request@dol.gov.

For more information regarding the Davis-Bacon and related Acts and the Davis-Bacon survey program, please visit the division’s website.

Gov. Wolf Announces $11 Million in Workforce Development Funding for PAsmart Apprenticeship Programs

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Office of the Governor Tom Wolf
April 14, 2022

Governor Tom Wolf today announced awards totaling more than $11 million for 26 apprenticeship programs that will empower Pennsylvania workers to earn while they learn and support Pennsylvania businesses in building a pipeline of talent for occupations in agriculture, manufacturing, healthcare, IT, education, human services, building trades and more.

“Throughout history, apprenticeships have been a vital and necessary part of career education in certain fields,” Gov. Wolf said. “By expanding these important programs to more occupations and industries, we are offering Pennsylvania workers opportunities to train for family-sustaining jobs while helping businesses develop a workforce that will strengthen our economy and our communities.”

Each of Pennsylvania’s 67 counties will be served by one or more of the funded programs.

Department of Labor & Industry (L&I) Secretary Jennifer Berrier said the funding comes at an important juncture for Pennsylvania’s workers and employers alike.

“Today, workers have the power to demand better pay, better benefits and safer working conditions. Pennsylvania’s economic recovery from the pandemic depends significantly on what we do now to respond to those demands,” Berrier said. “Workforce development is most successful when community members collaborate to develop practical solutions to collective problems. The apprenticeship programs funded through PAsmart are precisely the types of solutions we need to meet this moment.”

The grants, offered through L&I’s Apprenticeship and Training Office (ATO), are part of Governor Wolf’s PA Statewide Movement for Accountability, Readiness and Training (PAsmart) framework, which is designed to better align education, workforce and economic development initiatives and funding.

In March, the administration also announced a new round of grant funding available to Pennsylvania apprenticeship programs to develop diverse talent pipelines and reach underrepresented populations within the building and construction trades. A total of $1.5 million is available, and applications are due by April 21.

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DA announces effort to fight wage theft

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BY CITY NEWS SERVICE LOS ANGELES
PUBLISHED 3:43 PM PT APR. 14, 2022

LOS ANGELES (CNS) — Los Angeles County District Attorney George Gascón Thursday announced an agreement with the California Labor Commissioner to bolster the investigation and prosecution of wage theft.

The pact calls on the state’s Department of Industrial Relations to identify and refer investigative leads, complaints and referrals of possible violations to the District Attorney’s Office for civil and criminal prosecution.

“When hard-working people are not paid the money they have rightfully earned, they lose their ability to feed, clothe and house their families, creating a cascading effect that causes our entire community to suffer along with them,” the district attorney said in a written statement.

A 2020 study found that up to 21% of the construction workforce — some 2.4 million workers — are illegally paid off the books or misclassified as independent contractors, according to the District Attorney’s Office, which noted that losses to federal and state treasuries amount to some $8.4 billion.

Frank Hawk, president of the Southwest Regional Council of Carpenters, lauded Gascón for helping to “fight against wage theft and fraud in the construction industry here in Los Angeles, the majority of which is happening in the multi-family residential housing sector.”

Meanwhile, the district attorney also announced a separate pilot pretrial diversion program with Southwest Carpenters for young adults facing criminal charges.

The program, dubbed “Ready,” will provide 20 people between the ages of 18 and 25 with a pathway to a career as a union carpenter with full benefits and a pension, and will partner with Homeboy Industries, Second Call and Volunteers of America to create a pipeline to the union’s pre- apprenticeship programs, including a four-week program in Whittier that is geared toward the under-served people of Los Angeles, including the formerly incarcerated, according to the District Attorney’s Office.

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Report: Wage theft, payroll fraud hurting construction workers

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By JONAH CHESTER (April 11, 2022)

MADISON – A new report finds declining wages in the construction industry, fueled by wage theft and payroll fraud, are pushing more construction workers into social-support programs.

The analysis, by the Labor Center at the University of California-Berkeley, found between about 12% to 21% of construction workers across the country are either misclassified as independent contractors or paid under the table, depriving them of health insurance and other employer-provided benefits.

Peter Barca, secretary of the Wisconsin Department of Revenue, said the practice is cheating.

“These scammers, many of whom are coming into the state surreptitiously, they’re cheating the state out of revenue,” Barca asserted. “Worse, they’re cheating workers by misclassifying them. They’re cheating law-abiding companies within the state, and they really cheat everybody.”

The report noted 15% of construction workers in Wisconsin do not have health insurance, more than twice the rate of all workers in the state, and $207 million is spent annually on social-support programs, such as SNAP and Medicaid, to support families of construction workers.

Last month, a task force empaneled by Gov. Tony Evers released new recommendations to tackle wage theft and payroll fraud, which include bolstering penalties and tracking policies for the illegal practices.

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Illinois lawmakers pass a bill they believe will help stop wage theft

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By Andrew Hensel – Illinois Radio Network
April 9, 2022

Illinois lawmakers have passed a measure supporters say will help combat wage theft amongst constructions workers.

House Bill 5412 was introduced by state Sen. Cristina Castro, D-Elgin. She said the measure would help workers collect wages from subcontractors that have not been able to pay.

If a subcontractor fails to pay an employee, HB5412 states that an employee can file a legal claim with the general contractor for any unpaid wages and benefits.

The bill was met with heavy debate on the last day of the legislative session.

“I think there was a lot of confusion from the opponents on what a current law did or did not do compared to this,” Castro said. “All this does is add another avenue for someone to seek to be reimbursed for lost wages.”

Castro went on to say that this bill ensures workers’ wages are paid.

“This measure will ensure that the hardworking individuals who are employed by subcontractors receive fair compensation should that subcontractor fail to pay them,” Castro said.

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LI firm pays $1.45M in prevailing wage settlement

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By: David Winzelberg
April 6, 2022

The New York State Department of Labor has reached a $1.45 million settlement with a Long Island contractor for failing to pay prevailing wage for a public works project.

The agreement with Calverton-based Miller Environmental Group stemmed from the company’s contract with PSEG Long Island to address oil spills and soil contamination, conduct clean-up, and perform other work supporting utility installation, according to a DOL statement.

Investigators confirmed that Miller Environmental failed to bid the contract at prevailing wage rates and that PSEG Long Island failed to inform Miller Environmental that this contract involved public work. After discussions on the matter, Miller Environmental agreed to pay 88 employees the full underpayment amount, making those payments in January and February.

Contractors and subcontractors must pay the prevailing rate of wage and supplements to all workers under a public works contract based on the locality where the work is performed, according to state law. Third parties contracted on behalf and for the benefit of a public entity are also subject to the prevailing wage requirements. Because PSEG Long Island operates Long Island Power Authority’s electrical transmission and distribution infrastructure, its contracts are subject to those requirements.

“In New York State, we believe workers deserve a fair wage for a fair day’s work,” DOL Commissioner Roberta Reardon said in the statement. “Protecting workers is a top priority to the New York State Department of Labor. We remain vigilant to ensure that employers are properly compensating employees for the work that they do. We will never stop protecting the paychecks of hard-working New Yorkers.”

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Burlington creates wage rules for construction workers on city projects. What that means

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April Fisher
Burlington Free Press
Jan. 19. 2022

Burlington construction workers have won new wage regulations.

The city of Burlington passed an ordinance update Jan. 10 that requires all city-funded construction projects that cost more than $100,000 to be carried out by workers who are paid at or above Vermont’s prevailing wage.

The state prevailing wage for construction workers ranges from $14.48 to $41.44 per hour, depending on the specialization of labor. The state minimum wage is $12.55 per hour.

The new amendment is an addition to Burlington’s “Responsible Contractor” ordinance, which also requires city construction contractors to provide workers’ compensation insurance, have a responsible company safety program, and meet related standards.

The amendment was passed unanimously by the City Council after months of pressure from labor union alliances including the Vermont Building and Construction Trades Council and Vermont State Labor Council, AFL-CIO.

“Ordinances such as these have been adopted throughout the country and have proved to be effective in protecting taxpayers dollars, ensuring the public only pays for quality construction projects that simultaneously stimulate our local economy,” said Vermont AFL-CIO president David Van Deusen.

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Wareham Paving Company Cited Over $1 Million for Not Paying Workers and Failing to Keep Payroll Records on Public Projects

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Jan. 19, 2022
FOR IMMEDIATE RELEASE:
Office of Attorney General Maura Healey
The Attorney General’s Fair Labor Division

BOSTON — A Wareham Company and its owners have been cited more than $1.2 million in restitution and penalties over allegations that they did not pay prevailing wages to employees and failed to furnish accurate payroll records, Attorney General Maura Healey announced.

Rochester Bituminous Products, Inc., its President, Thomas Russo, Manager, Albert Todesca, and Treasurer, Michael P. Todesca, were issued 25 citations by the AG’s Office for failing to pay prevailing wages to employees on various public projects including projects for the City of Boston, Town of Mattapoisett, and the Boston Water & Sewer Commission, and failure to furnish true and accurate payroll records to the AG’s Office, and failure to submit true and accurate certified payroll records to an awarding authority on a weekly basis for work performed to the above mentioned locations as well as Plymouth, Abington, Canton, Weymouth, Bridgewater, and Sharon. Through the citations, the AG’s Office is seeking penalties from Rochester Bituminous for its violations of state labor laws, and restitution for 22 employees it allegedly harmed.

“Companies have an obligation to pay their workers the wages they’ve earned,” said AG Healey. “We are issuing these citations to secure relief for workers who were cheated by this company’s illegal practices.”

In 2019, the AG’s Fair Labor Division began investigating whether Rochester Bituminous was paying its workers the proper prevailing wage for paving work done for the City of Boston. The division also received several complaints from past and present workers of the company, alleging that they had not been paid prevailing wages for work performed.

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Attorney General James and DOI Commissioner Strauber Deliver $900,000 to 200 NYCHA Construction Workers Denied Fair Pay

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Office of NY Attorney General Leticia James
Press Release – April 4, 2022

Lintech Electric Failed to Pay Employees the Prevailing Wage Rate on NYCHA Projects

NEW YORK – New York Attorney General Letitia James and New York City Department of Investigation (DOI) Commissioner Jocelyn E. Strauber today announced their joint efforts to combat wage theft by securing nearly $900,000 for more than 200 workers who were underpaid by Lintech Electric (Lintech). An investigation found that over the course of three years, Lintech disregarded the prevailing wage rate and underpaid its employees by almost $900,000 on multiple New York City Housing Authority (NYCHA) projects in all five boroughs. As a part of the agreement, Lintech will repay the impacted workers the money they were cheated plus interest and will be banned from public works projects in New York for five years.

“Every worker deserves fair pay for their hard work,” said Attorney General James. “The prevailing wage was established for a reason — to protect the hardworking New Yorkers who built our city and keep it functioning. No employee should fear that they will be cheated at the hands of greedy employers, especially at the expense of the public good. I am proud to finally return the money owed to these dedicated workers and I will do everything in my power to ensure that Lintech does not deceive or exploit any more workers.”

“Lintech, a subcontractor for general contractors hired by NYCHA through its guarantors, agreed to pay almost $900,000 to workers that it underpaid for over three years, in violation of New York’s Prevailing Wage Law,” said DOI Commissioner Jocelyn E. Strauber. “I applaud the workers who alerted DOI of this underpayment, prompting an audit that exposed this wrongful conduct. As a result of this joint investigation by DOI and Attorney General James’ office, Lintech will also be banned from New York public works projects for five years. DOI and its law enforcement partners will pursue and hold accountable employers that seek to cheat workers of their rightful wages, and we will ensure that those victims are made whole. I thank the state attorney general and NYCHA for their partnership on this important investigation.”

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US Department of Labor Issues Directive Promoting Effective Enforcement to Advance Equal Employment Opportunity, Greater Compliance 

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Agency Office of Federal Contract Compliance Programs
Date March 31, 2022
Release Number 22-587-NAT

‘Effective Compliance Evaluations and Enforcement’ directive updates guidance on the agency’s compliance evaluation policies, expectations for federal contractors

WASHINGTON – The U.S. Department of Labor today announced that its Office of Federal Contract Compliance Programs has issued a directive to promote effective enforcement and greater federal contractor compliance with equal employment opportunity laws.

As part of its enforcement efforts, OFCCP conducts compliance evaluations of federal contractors to identify and remedy systemic barriers to opportunity and promote compliance. The directive issued today – DIR 2022-02: “Effective Compliance Evaluations and Enforcement” – provides updated guidance on the agency’s compliance evaluation policies and expectations for contractors.

The directive will strengthen the agency’s compliance evaluations and reduce delays by promoting the timely exchange of information. It also explains OFCCP’s updated policies regarding its scheduling of contractors for compliance evaluations, including enhancing the agency’s neutral scheduling procedures to reach a broader universe of federal contractors and eliminating scheduling delays.

“The directive we issued today will enhance our ability to use strategic enforcement to help more workers,” said Office of Federal Contract Compliance Programs Director Jenny R. Yang. “By providing transparency and clarity on OFCCP’s policies and expectations, the directive will foster consistent accountability and avoid delay in compliance evaluations. It will also promote a proactive approach to compliance by federal contractors.”

“OFCCP is committed to regular and open communication with federal contractors to discuss any concerns identified and to facilitate a prompt and successful resolution of compliance reviews,” added Yang.

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