In Support of Prevailing Wages

Posted by National Alliance for Fair Contracting on

As Mayor and Vice Mayor of Vacaville, we have unique knowledge of the impact of public construction projects both on taxpayers, and our local economy. Taxpayers expect our public works to be done right, and cost effectively. And our community benefits when these projects employ local workers at decent wages.

That’s why last year we passed a resolution in support of SB7 – a new state law that encourages more cities to pay prevailing wage on public construction projects.

And it’s why today, we are disappointed to see some California cities filing suit to block this law.

Research clearly demonstrates that prevailing wage projects don’t cost any more than those built by low wage, less skilled workers. In fact, prevailing wage projects often save taxpayer dollars as a result of the projects having fewer change orders, fewer delays, and fewer accidents.

The reason is simple: Prevailing wage projects are built by the best trained workers available. Prevailing wage workers tend to be higher skilled because these projects help fund training programs that not only ensure that we get top quality completed project, but that we have a well trained workforce in the future to support our growing infrastructure needs.

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California Truckers Will Be Paid $2.2 Million in Misclassification Case

Posted by National Alliance for Fair Contracting on

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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Record $17.7 Million in Unpaid Wages Returned to Workers on Public Works Projects in 2013

Posted by National Alliance for Fair Contracting on

OAKLAND, Calif., March 20, 2014 /PRNewswire-USNewswire/ —

California Labor Commissioner Julie A. Su announced that in 2013, over 10,000 workers statewide received checks which returned a cumulative $17.7 million in unpaid prevailing wages on public works projects across the state.

The payments were collected from public works investigations that uncovered prevailing wage and other violations of state public works laws in over 400 publicly-funded projects. In 2012, the Labor Commissioner’s office collected the highest amount in the last decade when it reinstated $8.2 million to approximately 7,400 public works employees.  The $17.7 million figure for 2013 doubles the record set in the previous year.

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The Death of an Employer Scam

Posted by National Alliance for Fair Contracting on

One of the most pervasive scams that employers use to lower their workers’ wages is misclassification – that is, turning their workers into independent contractors or temps when they are actually employees. Misclassification shouldn’t be mistaken for the whim of an errant employer. On the contrary, it’s a strategy that has been used to transform entire industries.

From an employer’s perspective, the benefits of misclassification are clear. Turning a worker into a temp or a free agent obviates any need to provide him with benefits. It shields the employer from legal liability for health and safety violations, for industrial accidents, or from wage and hour violations. It invariably lowers such workers wages as well. It makes it impossible for workers to form unions.

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The Center for Contract Compliance – 12th Annual Conference

Posted by National Alliance for Fair Contracting on

Jim Reed, Director of the CCC, has just announced details for the upcoming 12th Annual Underground Economy and Labor Compliance Conference.  The conference is scheduled for May 14-16, 2014, at the Riviera Palm Springs in Palm Springs, CA.  Early registration is now available, sign up prior to April 6th, 2014, and your registration fee will be waived.

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San Rafael’s red-light camera company nabbed by state for not paying prevailing wage

Posted by National Alliance for Fair Contracting on

San Rafael’s red-light cameras may be dark, but the city’s relationship with the provider isn’t over.

The city has been instructed by the state to withhold nearly $25,000 in payments to Redflex Traffic Systems Inc. of Phoenix, which serviced the city’s two cameras, because the company failed to pay its contractors prevailing wage when the equipment was installed in October 2009. Prevailing wage is the basic hourly rate paid to public works project employees as set by the state, ensuring contractors aren’t awarded projects based on paying lower wages than a competitor.

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DOL Wage and Hour Division announces upcoming Prevailing Wage Seminars

Posted by National Alliance for Fair Contracting on

The Wage and Hour Division is pleased to announce the following Prevailing Wage Seminars for 2014:
Manchester, NH March 4-6, 2014
Phoenix, AZ March 18-20, 2014
Chicago, IL April 1-3, 2014
San Diego, CA April 22-24, 2014
Houston, TX May 7-9, 2014
Atlanta, GA June 3-5, 2014

If you wish to attend one of these seminars, please send an email to WHDPWS@dol.gov Your email should include your name, title, organization, mailing address, email address, and location of the seminar that you wish to attend. There is no fee for attending any of these seminars, however, space is limited. Upon receipt of this information, we will advise you whether your request can be accommodated.

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The Center for Contract Compliance – 12th Annual Conference

Posted by National Alliance for Fair Contracting on

Jim Reed, Director of the CCC, has just announced details for the upcoming 12th Annual Underground Economy and Labor Compliance Conference.  The conference is scheduled for May 14-17, 2014, at the Riviera Palm Springs in Palm Springs, CA.  Early registration is now available, sign up prior to April 6th, 2014, and your registration fee will be waived.

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California warehouse workers can sue Walmart over alleged abuse of “permatemps”

Posted by National Alliance for Fair Contracting on

A federal judge in California recently held that workers suing Wal-Mart Stores, Inc. and one of its warehouse operators, can go forward with their case to trial on the question of whether Walmart and the warehouse operator are liable as “joint employers” for alleged violations of hundreds of Southern California warehouse workers’ rights.

In making her determination to allow the workers to sue Walmart, the judge focused on the “economic realities” of the workplace and evidence showing that Walmart and its subcontractor, Schneider Logistics Trans-Loading and Distribution, controlled the terms and conditions of work performed by warehouse workers-who were officially employed by labor service subcontractors as, what is increasingly referred to as, “permatemps.”

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