House members introduce bill to raise NC’s minimum wage, improve worker rights and incomes (NC)

Posted by National Alliance for Fair Contracting on

By Rob Schofield – February 12, 2019

… State Representatives Pricey Harrison (D-Guilford) and Susan Fisher (D-Buncombe)  introduced some long overdue legislation yesterday to dramatically improve the treatment of workers in North Carolina. House Bill 46- the “Economic Security Act of 2019” – would make the following changes to state law:

  • it would increase the state minimum wage to $15 per hour over five years;
  • it would add North Carolina to the list of states that guarantee pay equity bay barring employers from paying employees of one gender less than employees of another gender for the same work;
  • it would require employers to provide workers with paid sick days and family medical leave (with some exemptions for small employers);
  • it would increase the tipped minimum wage;
  • it would enact new protections against “wage theft” by employers;
  • it would enact new “ban the box” protections to bar employers from inquiring into the criminal history of job applicants on initial application forms;
  • it would repeal the state’s ban on collective bargaining by public employees;
  • it would reinstate the state earned income tax credit and state child care tax credit.

Needless to say, the measure faces an uphill battle in the GOP-led General Assembly, but if there was ever a bill around which North Carolina working families could and should rally in 2019 and beyond, this is it.

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Mayor Kenney Signs Philadelphia Fair Workweek and Minimum Wage Bills Into Law (PA)

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The National Law Review
Thursday, December 27, 2018

Philadelphia Mayor Jim Kenney signed two bills last week that provide affected employees in the City with more scheduling certainty and higher wages.

The first bill, the Fair Workweek Employment Standards Ordinance, requires employers with at least 250 employees and 30 locations worldwide in the retail, food services, and hospitality industries to provide their employees with more certainty regarding their work schedules, among other reforms. For more information on the Fair
Workweek Ordinance, please see Ballard Spahr’s prior alert.

The Philadelphia Minimum Wage Bill, which amends the 21st Century Minimum Wage Standard Ordinance, is much broader and will increase the minimum wage for all City employees, contractors, and subcontractors beginning next summer.

Starting July 1, 2019, the wage bill will gradually raise the minimum wage from the current $12.20 an hour to $13.25. The wage will increase to $13.75 an hour on July 1, 2020, $14.25 an hour on July 1, 2021, and $15.00 on July 1, 2022. After that, the minimum wage standard will continue to rise based on annual consumer price index adjustments.

The increased minimum wage will apply to all City employees and to employees of covered employers, including those that are recipients of City concessions, franchises, and leases, as well as recipients of City financial aid. Financial aid recipients include all persons or entities that receive direct City assistance of more than $100,000 in any 12-month period. City financial aid recipients must comply with minimum wage increase requirements for five years after their receipt of financial aid. Benefits incidental to City policies, regulations, ordinances, or charter provisions are not considered City financial aid.

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Higher Minimum Wage Could Mean A $6,000 Raise For As Many As 1.4 Million Illinois Workers

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Frank Manzo IV
October 25, 2018

La Grange: An increase to Illinois’ state minimum wage would grow the state’s economy and boost the paychecks of as many as 1.4 million workers by up to $6,000, according to new research from the Illinois Economic Policy Institute (ILEPI) and Project for Middle Class Renewal at the University of Illinois Urbana-Champaign.

The policy brief assesses the economic impacts of three different proposals (increasing to $10 an hour by 2019, to $13 an hour by 2022, and to $15 an hour by 2024) to raise the state’s current minimum wage, which has been set at $8.25 an hour since 2010.

“Increasing the minimum wage is a win-win-win for workers, taxpayers, and the economy,” said ILEPI Policy Director Frank Manzo IV. “It means higher wages and less poverty for workers, more spending across the economy, higher tax revenues, and less reliance on welfare programs.”

Among the three scenarios studied, researchers found that a minimum wage increase would increase paychecks for 6%-23% of the state’s total workforce.

…

The report finds that the increased consumer spending associated with wage increases would grow the economy by $5 billion-$19 billion per year.

The researchers note that wage increases have not produced the negative impacts on employment often claimed by opponents. A recent study found that job growth in the City of Chicago, which began increasing its minimum wage in 2014, has more than kept pace with surrounding suburbs that made no changes to their minimum wage policies. Additionally, researchers note that 9 of the 13 states with minimum wages of at least $10 per hour have unemployment rates that are the same or lower than Illinois.

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DRYWALL CONTRACTOR FINED $2 MILLION; IS CALIFORNIA WAGE THEFT RAMPANT? (CA)

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By Jane Mundy
August 10, 2018

THE CALIFORNIA LABOR COMMISSIONER’S OFFICE FINED A DRYWALL COMPANY $2 MILLION FOR WAGE THEFT-SPECIFICALLY FAILING TO PROPERLY COMPENSATE WORKERS FOR REST PERIODS, OVERTIME AND SOME WORKERS FOR NOT PAYING MINIMUM WAGE.

Los Angeles – After workers at Fullerton Pacific Interiors Inc., complained about California labor law violations to the non-profit Carpenters Contractors Cooperation Committee, the California Labor Commissioner’s Office stepped in. Investigators found that the drywall company paid a daily rate that didn’t include overtime hours or rest breaks and 28 workers were not even paid minimum wage. Fullerton was fined nearly $2 million for wage theft violations.

The work included taping and drywall installation at hotels, recreation centers and casino projects in Los Angeles, Orange and San Bernardino counties between August 2014 and June 2016. According to the citation, Fullerton failed to properly compensate 472 workers for rest periods and 289 workers were not paid for overtime, along with other wage violations. California state Labor Commissioner Julie Su said in a statement that, “In construction, unscrupulous contractors attempt to obscure their wage theft by paying workers a flat rate rather than for all hours worked. But a daily or other flat rate system does not take the place of minimum wage and overtime obligations.”

THE $2 MILLION FINE

This is how the wage theft fine was calculated. $1,892,279 payable to the workers was broken down as follows:

* $798,664 for rest period violations. Most workers in California are entitled to a paid 10-minute break for every four hours worked, or paid for an extra hour at their regular rate. Fullerton’s workers were allowed a 30-minute lunch “hour” but did not receive rest breaks.

* $386,685 for unpaid overtime.

* $692,500 for wage statement violations.

* $14,431 for the unpaid wages, liquidated damages and waiting time penalties. Workers paid less than minimum wage are entitled to liquidated damages that equal the unpaid wage plus interest. There are also penalties for waiting times that are calculated based on taking the employees wages and multiplying it by the days they waited for compensation, at a maximum of 30 days.

* $72,400 civil penalty: The company would also be on the hook for civil penalties of $50 per work day for the initial violation, which increases to $100 for subsequent pay periods.

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Executive order: Minimum wage for workers in gov’t-contracted construction is now $15 (Puerto Rico)

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By Eva Lloréns Vélez on July 30, 2018

SAN JUAN – Puerto Rico Gov. Ricardo Rosselló signed an executive order to increase the minimum wage for Puerto Rico construction industry employees to $15 an hour for government contracting. The order also requires locally produced cement for government construction projects.

In addition, the decree requires labor agreements for projects financed by the government to establish security conditions and professional training “for the protection of workers,” according to a release issued by the governor’s office, La Fortaleza, following his press conference there on the matter.

Local contractors complain that they are being discriminated against by the government in its project procurements in favor of stateside companies, which Rosselló acknowledged has happened historically, but noted differences when comparing local and mainland resource after a disaster.

“Sometimes there is not enough labor; sometimes they are huge projects that some of the local contractors do not qualify for and sometimes it’s remuneration. So what have we decided to do? We have decided to start looking for solutions,” he said at a press conference Monday.

The measure could apply to 36,000 to 44,000 construction workers, of which 21,000 are salaried employees who work for construction companies. “That is the potential universe of people that can be impacted as long as that construction company is bidding for construction work with the government,” Labor Secretary Carlos Saavedra said.

“One of the fundamental elements in the recovery of Puerto Rico is the construction industry, which is vital to be prepared for weather events and other emergencies that may affect us in the future,” the governor is quoted as saying in the release, adding that “now that Puerto Rico begins the road to reconstruction, it is indispensable that the local construction workforce be stronger than ever. We need more Puerto Rican construction workers, better trained, and better paid.”

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Houston Is Being Rebuilt on a Foundation of Wage Theft (TX)

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The exploitation after the storm.

JANUARY 22, 2018
BY BRYCE COVERT

Pittsburgh City Council gave preliminary approval Wednesday to a measure that would require a $15 an hour minimum wage for employees of some contractors.

The bill would apply to companies in professional service contracts with the city over $100,000.

According to data from the City Controller’s Office, 31 contracts over $100,000 were approved in 2015. Most were related to construction projects, health care and software upgrades.

When the measure was introduced on Monday, Nov. 20, Mayor Bill Peduto said implementing it would have a minimal effect on the cost of contracts and the city’s finances.

“We want to work with companies that also believe a worker’s value should be a minimum of $15 an hour,” he said. “We are hoping this will be the standard for which Pittsburgh companies will recognize the worth of their workers.”

Peduto said this was the second part of a city wage plan that began in November 2015, when he signed an executive order to gradually increase minimum wage for city employees to $15 an hour by 2021. It’s currently $12.50.

…

Wage theft and safety violations were rampant in Houston’s low-wage construction industry even before the storm hit, according to local worker centers. One study found that 12.4 percent of construction workers in the city suffered injuries on the job. “The Texas construction industry is … incredibly dangerous,” says José Garza, executive director of the Workers Defense Project. “For years, the industry has absolutely failed to prioritize safety.”

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Higher Minimum Wage For Employees Of Some City Contractors One Step Closer To Implementation (PA)

Posted by National Alliance for Fair Contracting on

By KATHLEEN J. DAVIS
11-29-17

Pittsburgh City Council gave preliminary approval Wednesday to a measure that would require a $15 an hour minimum wage for employees of some contractors.

The bill would apply to companies in professional service contracts with the city over $100,000.

According to data from the City Controller’s Office, 31 contracts over $100,000 were approved in 2015. Most were related to construction projects, health care and software upgrades.

When the measure was introduced on Monday, Nov. 20, Mayor Bill Peduto said implementing it would have a minimal effect on the cost of contracts and the city’s finances.

“We want to work with companies that also believe a worker’s value should be a minimum of $15 an hour,” he said. “We are hoping this will be the standard for which Pittsburgh companies will recognize the worth of their workers.”

Peduto said this was the second part of a city wage plan that began in November 2015, when he signed an executive order to gradually increase minimum wage for city employees to $15 an hour by 2021. It’s currently $12.50.

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Minnesota minimum wage set to rise with inflation in 2018

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The minimum wage will rise by 15 cents to $9.65 per hour for most businesses around the state.

By Erin Golden Star Tribune
AUGUST 17, 2017 – 11:38PM

Minnesota’s minimum wage will increase next year by 15 cents to keep up with inflation, rising to $9.65 per hour for workers at many businesses across the state.

The increase, announced Thursday by the Minnesota Department of Labor and Industry, is effective Jan. 1, 2018. It’s the result of a 2014 law that boosted the minimum wage to $9.50 and required the state to begin calculating automatic inflationary increases for each year, starting with 2018.

About 250,000 Minnesota workers earn less than $9.65 per hour. Gov. Mark Dayton and Lt. Gov. Tina Smith said in a statement that the wage bump is aimed at helping those residents build economic stability.

“Our state and nation was founded on the belief that hard work and opportunity should go hand in hand,” Smith said. “Raising the minimum wage will help make this value a reality for thousands of Minnesotans, many of them people of color and women with children.”
The new rate applies to workers at businesses with annual gross revenue of $500,000 or more. Employees at businesses with lower revenue, who now make $7.75 per hour, will see their minimum wage rise by 12 cents, to $7.87 per hour. That will also be the new training rate for workers younger than 20 for the first 90 days of employment, and for youth workers under age 18.

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North America’s Building Trades Unions Succeeds in Beating Back 3 Anti-Prevailing Wage Amendments

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09/11/2017 – 3:47pm

As the U.S. House of Representatives was voting last week on appropriations bills to keep the federal government running, Rep. Steve King (R-Iowa) attempted to amend every piece of legislation to undo Davis-Bacon protections that ensure fair prevailing wages are paid on publicly funded construction projects.

Fortunately, King’s efforts to cut wages have been unsuccessful. Every Democratic member and 54 Republicans voted “no,” on all three of King’s amendments. Each vote on King’s three amendments failed 173-240, with 54 Republicans siding with all Democrats in voting “no.” Every member of the Massachusetts delegation voted “no” in support of fair wages for America’s building trades workers.

Prevailing wage standards are a minimum wage for skilled construction work on publicly funded projects – including bridges, roads, water projects, tunnels, pipelines, municipal buildings, courthouses, schools and libraries. It is a market determination based on government surveys of the average pay rate (wages, fringe benefits, training contributions) for each construction craft in a geographic area. These standards are intended not only promote a level playing field for local businesses, but to support the training programs needed to prepare local workers for careers in the skilled crafts.

Research consistently shows that prevailing wage standards lead to better economic and industry outcomes – including more local jobs, less poverty, and safer, more efficient and productive worksites – with no significant impact on total project costs.

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Wage theft is widespread, but politics and policies can play a powerful role in reducing it.

Posted by National Alliance for Fair Contracting on

Wage theft is pervasive in America; in a new study of low-wage workers across the US, Daniel J. Galvin finds that 16 percent were paid less than their state’s minimum wage. He also finds that workers in those states which had greater employment law protections tended to have a lower chance of experiencing wage theft, and that those protections tended to be in states with unified Democratic governments. With Donald Trump’s Labor Department unlikely to do much to address the problem, he writes that workers’ advocates will need to build coalitions and work with Democrats at the state and city level in order to ensure workers are protected from wage theft. 

 

Daniel J. Galvin

Wage theft is pervasive, but often remains hidden. When employers cheat employees out of the wages they’ve earned, few complain out of fear they’ll be fired, deported, or abused. Indeed, as the Trump administration has begun more aggressive deportations, immigrant workers have already become less likely to come forward.

The cases of wage theft we are able to see are either brought to light through the bravery of workers who feel they must take a stand or through Department of Labor investigations, lawsuits brought by determined attorneys general like Eric Schneiderman of New York, or painstaking efforts to root them out by innovative state labor commissioners like Julie Su in California. Journalists have helped raise awareness as well.

A New York Times exposé of the nail salon industry in New York City, for example, revealed that new employees-usually undocumented immigrants-were often required to pay $100 for the opportunity to work, forced to “train” for weeks without pay, and were then paid as little as $30 a day for 12-hour days, six or seven days a week, all in violation of federal and state minimum wage and overtime laws.

Almost everything else we know about the problem comes from academic investigations. The most widely cited study, conducted back in 2008, surveyed 4,387 hard-to-reach low-wage workers in New York, Chicago, and Los Angeles and found that 26 percent had been paid less than the minimum wage in the previous week, with 60 percent underpaid by more than $1 per hour. More than three quarters of those who worked over 40 hours did not receive any overtime pay.

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