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Wage thieves will soon face criminal prosecution in Multnomah County

Northwest Labor Press – By Colin Staub
Aug 17, 2022

Employers who intentionally withhold wages totaling more than $10,000 could be taken to criminal court under an agreement in development between state labor regulators and the Multnomah County District Attorney’s office.

Oregon’s Bureau of Labor & Industries (BOLI) signed a memorandum of understanding with District Attorney Mike Schmidt on March 7. It’s not binding and isn’t legally enforceable, but it indicates both parties intend to enhance enforcement of wage and hour laws.

No cases have been referred for prosecution yet. But BOLI Wage & Hour Administrator Laura van Enckevort said she hopes to have at least a few cases identified for referral to the DA’s office in September, and definitely before the end of the year.

Employers could face felony charges

Schmidt says he was interested in tackling wage theft even before voters elected him in May 2020. He draws a connection between wage theft and public safety.

“When workers aren’t paid and they can’t bring home a paycheck, then that hits food on the table, the electric bill, the school supplies, that hits everything, and that can destabilize entire communities,” Schmidt said. “When I think about public safety, the thing that I think makes us the most safe is when communities are healthy and thriving. If you look out across Multnomah County, the places with the greatest economic disparity are the places we see the most criminal challenges.”

Schmidt says he’s heard several first-hand accounts from victims of wage theft since entering office. In one case, a man came to Schmidt to advocate on behalf of a group of Portland laborers who weren’t being paid by a contractor.

“They got to the first round of checks, and they bounced,” Schmidt said. “The second round of checks, and they bounced. They got to the third round, and he promised a bag full of cash. And then he showed up with an empty bag. He kept stringing them along until they finally walked off the job.”

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Wage Theft Ordinance Passes

KC Labor Beacon
Nov. 24, 2021

Another success in our ongoing fight against wage theft! Recently, Kansas City, Mo city council passed its first ever Wage Theft ordinance to hold cheating contractors accountable. Members of organized labor joined Councilman Kevin O’Neill after  the first ever Wage Theft ordinance was passed\. The ordinance will criminalize those contractors who use labor brokers, 1099s, pay cash without certified payrolls and other forms of illegal payments to workers. The new Civil Rights and Equal Opportunity Department will enforce prevailing wage, wage theft and city tax evaders by monitoring all worksites that are either contracted with the city or have city incentives tied to their project. In addition, changes were made to the Fairness in Construction Board which will include four new members. The board will include a member from organized labor, one from the Associated General Contractors and two from the community.

Michigan Legislature Considers Package of Bills Addressing Wage Theft, Independent Contractors, and Noncompetes (MI)

The National Law Review
Friday, September 6, 2019

On August 29, 2019, legislators from the Michigan House of Representatives announced an ambitious package of 12 bills aimed at creating new criminal and civil penalties to combat employers that fail to properly pay wages and overtime pay. The legislation would also establish enhanced protections and penalties under Michigan’s whistleblower statute and create new civil remedies against employers for overzealous enforcement of noncompete agreements and for misclassifying employees as independent contractors.

Background

The bills’ highly publicized announcement, which was coordinated with local labor union leaders to occur just before the Labor Day holiday, aligns with Michigan Attorney General Dana Nessel’s Payroll Fraud Enforcement initiative. Nessel introduced the initiative in April 2019 when she created a payroll fraud hotline for reporting suspected violations of existing payroll and wage theft laws in effect in Michigan.

The new legislation would make employee-friendly modifications to several Michigan statutes, including the Payment of Wages and Fringe Benefits Act (PWFBA), the Whistleblowers’ Protection Act (WPA), the Michigan Antitrust Reform Act (MARA), and the Improved Workforce Opportunity Wage Act (IWOWA), and would amend the Michigan Code of Criminal Procedure to create a new felony offense for employers that commit a second or subsequent violation of certain provisions of the PWFBA.

Summary Analysis of the Bills

Below is a summary of the initial drafts of the ten House bills in the package that would have the most significant effect on private employers. It is important to note, however, that these are initial drafts of proposed legislation and are a long way from being enacted into law, especially given the current composition of the Michigan Legislature. However, the intense interest from the attorney general’s office and any changes in the makeup of the House and Senate could give the bills momentum.

Final Thoughts

As Jimmy Stewart taught us all in his 1939 film Mr. Smith Goes to Washington, bills introduced on the legislative floor have a long way to go before they become law. To be sure, the potential for civil fines ranging from $5,000 to $10,000 per violation, mandatory assessment of attorneys and lost wages, and the possibility of felony criminal penalties make the legislative package something that will garner a lot of attention. Moreover, given the intense interest from the attorney general’s office and Michigan labor leaders, it is unlikely that the bills will die without significant debate and perhaps some provisions being passed into law.

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