Wage Gaps and Outcomes in Apprenticeship Programs

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The Effects of Gender, Race, and Region

By Daniella Zessoules and Olugbenga Ajilore
Posted on December 12, 2018, 12:01 am

Policymakers frequently approach the question of developing the workforce to meet the needs of the 21st century. Despite today’s historically low unemployment rates, wages for typical workers have barely budged for decades. While productivity has increased, gains have largely trickled to the richest Americans, exasperating persisting income inequality and painting an ominous picture of middle-class living standards. Furthermore, gaps in both wealth and income by race and gender have caused disproportionate labor market penalties for certain groups. Wage gaps and growing income inequality along racial lines have persisted despite higher educational attainment. For example, earning a bachelor’s degree or higher has not proven to reduce either the black-white or the Latinx-white wage gap. Meanwhile, employers are spending less on worker training than they used to. And too often, the training that they do provide is firm-specific, meaning that those skills do not translate well to other firms.

Registered Apprenticeship programs, which have bipartisan support, aim to address this issue by connecting Americans to decent-paying jobs as electricians, carpenters, and dental assistants, among others. The program, which the U.S. Department of Labor (DOL) administers through the Workforce Innovation and Opportunity Act, aims to help businesses develop highly skilled employees through hands-on customized training for a variety of occupations. The DOL asserts that the average hourly wage for a journeyperson who completes an apprenticeship is $23.94, equivalent to an annual salary of $49,795.

Investments in the workforce of tomorrow are necessary both to ensure pathways to relevant economic opportunities as well as to bridge economic disparities along racial and gender lines-including racial wealth and pay gaps-that continue to plague families across the country. Unfortunately, data on Registered Apprenticeship programs identify prominent economic disparities among women and people of color-many of whom face low enrollment rates within such programs and are concentrated in lower-paying occupations.

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Changes To State Highway Funding Rules Passed During Lame-Duck Session

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Transportation Experts Say Measure Aims To Allow DOT To Avoid Federal Wage Requirements On Some Highway Projects

Thursday, December 6, 2018, 5:25am
By Rich Kremer

Legislation passed during the Legislature’s lame-duck session could change how Wisconsin pays for major highway projects. Transportation insiders say the tweaks are meant, by lawmakers, to be a way for the state to avoid federal wage requirements.

The first bill approved by lawmakers during this week’s extraordinary session makes changes to how the Wisconsin Department of Transportation funds highway megaprojects, like those in southeastern Wisconsin and other major state highway projects throughout the state, by requiring at least 70 percent of the project be funded with federal dollars.

Under current law, the DOT uses a combination of federal and state dollars, but for megaprojects and other major highway improvements there isn’t a set minimum for federal funds.

Former DOT Secretary Mark Gottlieb said that change is significant because federal funds carry with them federal requirements that contractors be paid wages set by the U.S. Department of Labor.

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Worcester to guard against wage theft in future tax deals for private development

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By Nick Kotsopoulos
Telegram & Gazette Staff
Updated Dec 9, 2018 at 8:05 PM

WORCESTER – The city will include provisions against wage theft in future tax increment financing agreements for private development projects, City Manager Edward M. Augustus Jr. has informed the City Council.

The action is in response to a call by several councilors to strengthen the city’s current wage theft ordinance, where appropriate, to include stipulations for building permits.

While it has been determined that the city cannot legally impose such conditions on building permits, it can put them in tax deals for private projects.

“The goal is to secure compliance and eliminate the use of wage theft tactics by entities doing business with the city,” Mr. Augustus wrote in a report that goes before the City Council Tuesday night.

In 2016, the City Council approved a wage-theft ordinance that prohibits the city from awarding contracts to companies that have been found guilty of not complying with federal and state wage laws, including failing to pay their employees, and failing to pay prevailing wage, minimum wage and overtime.

Other types of wage theft include denial of legal benefits such as industrial accident and health insurance, improper classification of employees and violations involving payment of taxes, unemployment compensation, Social Security and income tax withholding.

Under the Worcester ordinance, successful bidders for city contracts have to provide a certification of compliance regarding payment of wages to employees.

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Labor Joins Gonzalez Fletcher to Introduce New Bill to Protect Workers from Misclassification

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By Nick Kotsopoulos
Telegram & Gazette Staff
Updated Dec 9, 2018 at 8:05 PM

Imagine working side-by-side with others who have all the benefits of being an employee of a company including paid sick days, a minimum wage, workers’ comp, unemployment insurance and more. Now imagine you are doing similar work without any of those protections because your boss decided to call you an “independent contractor” instead of an employee simply because he wants to cut corners on costs.

It’s called misclassification, and it’s a growing and devastating problem for workers, businesses that do the right thing and our economy as a whole.

The California labor movement joined Assembly member Lorena Gonzalez Fletcher today to tackle this problem head on, codifying into state law a recent California Supreme Court decision that provides a simple test employers must meet to classify workers as independent contractors. The test, a version of which exists in other states, removes uncertainty and ensures workers who are doing the job of an employee have all the protections and rights that should be afforded to them.

Alexei Koseff details the new effort to protect workers in today’s Sacramento Bee:

The bill would strengthen rules that make it harder for employers to classify workers as contractors and limit their rights under state labor laws.

“Individuals are not able to make it on three side hustles. That shouldn’t be the norm. That shouldn’t be accepted,” Gonzalez Fletcher said. She said the court’s decision is essential for maintaining solid employment for workers in a changing economy and for combating the income inequality that has helped drive California’s poverty rate to one of the highest in the nation.

“What we permit, what we don’t permit, what has worked for generations and built the middle class of California, needs to be largely intact,” she said.

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Former Obama labor official details how to stop misclassification

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Smith, speaking at forum in Newark, said interagency, coordinated enforcement and data sharing are two keys

By Alex Wolmart
Newark | Dec 6, 2018 at 1:56 pm

While many brought their worries and hardships, Patricia Smith brought solutions.

Smith – senior counsel at the Manhattan-based nonprofit the National Employment Law Project – broke down the issue of employee misclassification at an event sponsored by the New Jersey Department of Labor and Workforce Development on Wednesday in Newark.

Misclassification is misclassifying workers as independent contractors by filing 1099s rather than W2s. Employers who misclassify avoid having to pay unemployment and disability taxes.

Misclassification, by itself, is not illegal,” she said. “What’s illegal is the consequences of misclassification. When you find misclassification, you’re going to have, depending upon what you’re enforcing, a remedy.”

Smith, a former labor official in President Barack Obama’s administration, has been involved with misclassification for more than 20 years. She said interagency, coordinated enforcement; data sharing; a robust public and press outreach strategy; agency cross-training and joint employment; criminal referrals in appropriate cases; and required reports to either the Legislature or governor on a frequent basis are how the misclassification of employees as independent contractors will be remedied.

Labor Commissioner Robert Asaro-Angelo led the forum. He told the room of a few dozen workers, union reps and lawyers that Gov. Phil Murphy gets it.

“We’re at a time in our state where our governor and this administration wants to stand up for the right to protections, for the women and men who work hard and deserve the opportunities and benefits that they are entitled to,” he said.

And while many public advocates came to give their testimony, it was Smith who had the most to say.

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California passes AB 2358 aiming at discrimination & harassment in Building & Construction Trade Apprenticeships

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By Andrea Matsuoka | October 24, 2018

California Governor Jerry Brown recently signed AB 2358, a bill that seeks to address potential discrimination and harassment in building and construction trade apprenticeship programs. While AB 2358 contains broad anti-discrimination language, it was designed to encourage women in particular to pursue building and construction careers, beginning with apprenticeships.

AB 2358 expressly prohibits discrimination in building and construction trade apprenticeship programs on the basis of enumerated categories including sex, gender, race, national origin, religious creed, and disability. AB 2358 also requires these apprenticeship programs to affirmatively promote equal opportunity in several ways:

  • Programs must include an equal opportunity pledge in their apprenticeship standards, publications and bulletin boards; incorporate equal opportunity policies into orientations and information sessions; and provide equal opportunity notices to contractors annually.
  • Programs also must provide interactive anti-harassment and anti-discrimination training to all apprentices, instructors, and employees and implement procedures for handling and resolving complaints of harassment or discrimination.
  • Programs must designate one or more individuals to monitor all apprenticeship activity for equal opportunity compliance and to maintain compliance records, in order to promote coordination and accountability.

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Should workers report underground businesses?

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November 08, 2018

In addition to government, which is defrauded of tax revenue, workers are often a casualty of the underground economy. Underground businesses are not likely to expend effort to protect workers from occupational hazards, much less comply with federal and state workplace safety rules. And given that a great deal of underground employment involves physically taxing and highly hazardous work, the risk of injury and death far exceeds what is typical in a law-abiding business.

While the risk may be worth it for individuals who cannot find employment with a legitimate business, government still urges workers to report businesses that operate outside the law. For example, California’s Labor Enforcement Task Force (LETF) notes that its enforcement efforts benefit greatly from leads from the public. The LETF, in fact, lists the kind of information that makes for a good lead, and the better the information, the better the chance the lead will be investigated quickly.

$385 billion tax gap

California’s Employment Development Department (EDD) says that the term underground economy refers to “those individuals and businesses that deal in cash and/or use other schemes to conceal their activities and their true tax liability from government licensing, regulatory, and taxing agencies. Underground economy is also referred to as tax evasion, tax fraud, cash pay, tax gap, payments under-the-table, and off-the-books.”

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OSHA

The Occupational Safety and Health Act of 1970 gives employees and their representatives the right to file a complaint and request an OSHA inspection of their workplace if they believe there is a serious hazard or their employer is not following OSHA standards. Workers do not have to know whether a specific OSHA standard has been violated to file a complaint. The complaint should be filed as soon as possible after noticing the hazard or lack of compliance because OSHA citations may only be issued for violations that currently exist or existed in the past 6 months.

“Complaints from workers or their representatives are taken seriously by OSHA,” says OSHA. “OSHA will keep your information confidential.”

A good lead

The LETF says it focuses on low-wage industries and high-hazard occupations but, regardless of the industry sector, will review all reported cases of unlawful activity and “handle each case appropriately.”

“You may remain anonymous when you make your report,” states the LETF. “However, if you leave your contact information, we can ask follow-up questions, which may determine whether we are able to investigate the lead or not.”

If there is uncertainty about whether an employer is breaking the law, the LETF says answers to the following questions will help:

  • Is the employer providing itemized statements to employees?
  • Is the employer paying minimum wage and overtime?
  • Does the employer have a valid workers’ compensation insurance policy?
  • Does the employer provide a safe working environment for employees?
  • Is the employer correctly reporting wages to the EDD and paying payroll taxes?
  • Is the employer operating with the appropriate licenses or registration?
  • Is the employer correctly classifying workers as employees versus independent contractors?

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Support Prevailing Wages in Greater Minnesota

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By Filiberto Nolasco Gomez, Workday Minnesota
November 2, 2018

The Fair Contracting Foundation works to elevate the legal enforcement of applicable laws to ensure quality contractors have the opportunity to compete fairly. One of their focuses is protecting prevailing wages.

“Greater Minnesota supports its local economies and strengthens its skilled workforce with good jobs. Prevailing wage laws ensure that every County and region can protect its good jobs and local standards. Support prevailing wages! ”

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Veterans can trade helmets for hardhats [Opinion]

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Helmets to Hardhats is a national nonprofit that empowers our nation’s service members to succeed once they choose to return to civilian life by connecting them to sustainable apprenticeship training programs and career opportunities in the building and construction industry.

By Leonard Aguilar | Nov. 11, 2018

Our veterans are tough – they can do anything they put their minds to. They are our nation’s bravest men and women – individuals who have dedicated their lives to service.

With that said, transitioning from military to civilian life is an understandably challenging time for many veterans. There are many unknowns: How will this work? What comes next?

In my role as executive director and secretary-treasurer of the Texas State Building and Construction Trades Council, I know what it takes to thrive in the construction industry. I have also seen firsthand how the skills and qualities developed in the military can prove invaluable on a jobsite – from diligence and resilience, to drive and integrity.

As Veterans Day is upon us, I would like to highlight one organization that gets it right: Helmets to Hardhats.

Helmets to Hardhats is a national nonprofit that empowers our nation’s service members to succeed once they choose to return to civilian life by connecting them to sustainable apprenticeship training programs and career opportunities in the building and construction industry.

Yes, returning home can be difficult. However, our focus should shift to making veterans’ homecomings less burdensome – both on themselves and on their families. If veterans are made aware of the opportunities that await them, returning home can become less stressful and more exciting.

The apprenticeship training of North America’s Building Trades Unions (NABTU) is a natural fit for transitioning service members.

When Helmets to Hardhats connects the armed forces community with this training, it can be a perfect match – evidenced by the fact that most individuals who experience successful transitions begin with little to no experience in their chosen field.

Even better, the apprenticeship programs are privately-funded – provided by the trade organizations and their contractors at no cost to American taxpayers.

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I won’t be pushed back into nonunion construction

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Barrie Smith
October October 23, 2018

To the editor:

In his latest letter to the editor, Richard Berman continues to peddle false and hateful claims about the supposed treatment of African-Americans by New York City construction unions.

As an African-American man who worked, and almost died, doing nonunion construction in this city, few things could be more insulting than having a rabidly anti-union white man beholden to nonunion construction companies claim to speak about what it means to treat me fairly.

I know full well he could not care less about me or anyone he proports to show outrage on behalf of.

It is no wonder Berman can’t find a single black advocacy group in this city to deliver his despicable message. No responsible person would. The social-justice community here is actually well past talking about how “diverse” the building trades now are. That is a given fact now.

What is actually getting talked about is how the construction unions are providing the most unprecedented opportunities for African-American men and women returning from long periods of incarceration to truly re-enter society and re-start their lives. Yes-the building trades are actually now at the forefront of the civil rights struggle in this city. People who care about that issue know it. And no one has the time or patience anymore for Berman’s nonsense.

…

Numerous studies have shown-contrary to Berman’s claims-that the national pay gap between white and black workers is substantially ameliorated by collective bargaining agreements. But what really matters to workers of color is how they get paid and treated when they show up for work. Nonunion minority construction workers in the city are making a whopping 45% less than their counterparts with union representation. People care about whether they can feed their families, not fake statistics. The union jobs are the ones that make that possible.

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