Q&A: Former Commerce chief returns to a familiar role (MN)

Posted by National Alliance for Fair Contracting on

Brian Johnson
April 19, 2019 at 1:17 PM

After a couple of high-profile jobs in state government, Jessica Looman has returned to her roots in the construction trades.

Looman recently spoke with Finance & Commerce about issues such as the construction labor shortage, efforts to bring more young people into the construction industry, and wage theft. …

You previously served as general counsel for the laborers’ union. Did it feel like a homecoming when you took over as executive director of the Minnesota Building and Construction Trades Council?

Yeah, a lot of people have been welcoming me back, which has been really fun. I started my professional career in the labor movement – first in Washington, D.C., and then here in Minnesota. And then I went to law school and when I got out of law school, I became the general counsel for the Laborers District Council of Minnesota and North Dakota, which is the construction craft laborers union. That was a wonderful experience.

I think the combination of my work as general counsel for one of the larger building trades unions, and then particularly the great experience I got as a public servant in Minnesota, really brought me to where I am today.

What are some of your priorities as executive director?

We want to continue to develop public and private investment in infrastructure and construction. We see that we have a role in economic development of Minnesota, our communities and our economy. That includes growing our construction services sector.

The second goal is, how do we make sure we are bringing new people into the construction industry and the construction trades? And how do we make sure we are increasing our diversity, increasing our inclusion?

We currently have about 10,000 registered apprentices that are participating in building trades apprenticeship programs. About 20 percent of those are people of color. That is something we have been focusing on and trying to increase. And we continue to work in the space around workforce development. That includes increasing the number of women in the construction trades.

(Read More)

(Op-ED) Keith Ellison: Time to Address Wage Theft is Now (MN)

Posted by National Alliance for Fair Contracting on

By Keith Ellison, Union Advocate
April 29, 2019

Frankly, I was shocked.

Here I was, listening to a man through an interpreter describe how the paycheck that he worked so hard for at fairly low wages was delivered to him in a debit card. He didn’t get a regular paycheck or a check stub of any kind: he was told that this debit card represented his pay and that the pay had been deposited for him.

It was hard for him to figure out how much he had actually gotten paid. When he did, he found that he had lost as many as three days’ wages even though he had worked hard every single day.

…

These folks are all victims of wage theft. Wage theft takes many forms: having hours shaved off your paycheck; being forced to work off the clock; not getting paid for overtime; being paid at a lower rate than promised, sometimes below minimum wage; being paid in cash or other forms, with no Social Security, unemployment, or worker’s comp withheld; being misclassified as an independent contractor; and more.

…

I was also shocked at the frequency with which wage theft happens. Reputable studies from several years ago estimate that two-thirds of all low-wage workers in the country have experienced at least one form of wage theft. The amount of wages stolen each year in Minnesota may be in the hundreds of millions of dollars: nationally, the Economic Policy Institute has estimated that $50 billion a year is stolen in wage theft. That’s more than three times the value of all the goods stolen through robbery, burglary, larceny and auto theft combined.

Those estimates are 5-10 years old now. In an economy that’s gotten more and more predatory, it’s surely only gotten worse.

One reason people don’t know wage theft happens is because employers often retaliate or threaten to retaliate against people who report it. Another reason is that wage theft commonly happens in the shadows, to the most vulnerable among us, especially immigrants, people of color, and young people. African American workers are three times more likely to have had their wages stolen than white workers, and Latina/o workers are four times more likely. The predators who steal from these folks do so because they figure they’re the least likely to report it.

Too often, wage theft is connected to criminal abuse. According to human-rights advocates, every case of human trafficking also involves wage theft. If you find people being trafficked, you’ll find people whose wages are being stolen. That’s happening right here: in Hennepin County, a contractor has been charged with human trafficking, insurance fraud, and undocumented wage theft. The charges claim that “he knew the men that he had employed were undocumented workers and used that knowledge as leverage to force them to work long hours for less than market pay and without adequate safety protection,” and that “when workers were injured, he told his employees that they would lose their jobs and be deported if they sought medical attention.”

…

– Keith Ellison has been serving as Minnesota’s Attorney General since January 7, 2019. As the People’s Lawyer, his job is to help Minnesotans afford their lives and live with dignity and respect. Before becoming Attorney General, he represented Minnesota’s 5th Congressional District in the U.S. House of Representatives for 12 years.

(Read More)

United States: Minnesota Legislative Update: Bills To Watch (MN)

Posted by National Alliance for Fair Contracting on

Last Updated: March 14 2019
Article by Bruce J. Douglas, Kathleen Hoffmann and Brian A. Moen

The Minnesota Legislature is in session through May 20, 2019. This session promises to be very active with numerous bills affecting employers and the workplace. Major bills include paid leaves of absence (including family and sick leave), restrictions on an employer’s ability to access social media accounts, right-to-work legislation, vaccination exemptions, wage theft, and the legal standard for sexual harassment, and making available to a complaining party more information regarding the employer’s investigation and corrective action.

…

Wage Theft: H.F. No. 6 and S.F. No. 1933

A Minnesota bill, H.F. No. 6, seeks to provide that “[n]o employer shall commit wage theft.” Generally, “wage theft” refers to instances where an employer intentionally does not pay an employee all wages to which he or she is entitled. Common examples of wage theft include denying meal or rest breaks, paying a wage below the minimum wage, withholding tips, and not paying overtime. Minnesota state law currently addresses many of these specific scenarios (see Minn. Stat. § 181.03), but the proposed bill seeks to broadly define “wage theft” to include all situations where “an employer has failed to pay an employee all wages to which that employee is entitled.”

The bill also seeks to introduce stricter recordkeeping requirements for employers, increase the Minnesota Department of Labor and Industry’s enforcement tools (e.g., granting it the ability to issue subpoenas), and impose stricter penalties on employers for certain violations. Specifically, the bill proposes increasing monetary penalties for certain recordkeeping violations from $1,000 to $10,000, and imposing harsher criminal penalties upon employers for violations. For example, under the bill, an employer would be guilty of a gross misdemeanor if it engaged in wage theft and the total of unpaid wages to all affected employees was $10,000 or more.

H.F. No. 6, as written, has 33 Democrat and 2 Republican sponsors, but it is opposed by the Minnesota Chamber of Commerce. Proponents argue the bill is necessary to protect not only Minnesota employees, but also businesses and the community, which are harmed by those engaging in wage theft. For example, supporters argue that businesses engaging in wage theft cause the state to lose revenue from unpaid taxes on employee income. Conversely, critics argue that the bill’s definition of “wage theft” would presumably include situations where an underpayment was unintentional, which would therefore criminalize honest mistakes (for example, an employer could be found guilty for an inadvertent payroll error that caused a shortage in an employee’s paycheck). The bill was referred to the House’s Judiciary Finance and Civil Law Division on February 14, 2019.

(Read More)

Testimony at MN Capitol underscores need for stronger wage theft laws (MN)

Posted by National Alliance for Fair Contracting on

By Howard Kling, Workday Minnesota – February 12, 2019

MINNEAPOLIS/SAINT PAUL – Workers and business owners highlighted the need for stronger wage theft laws during a press conference and legislative hearing at the Minnesota Capitol on February 6. The hearing before the Minnesota House Labor Committee was the first stop for HF6, a bipartisan bill that would set rules and penalties for employers who avoid paying, or fail to pay, wages earned by their employees.

“I am here today to demand an end to this practice of wage theft,” said Humberto Miceli, a member of Centro de Trabajadores Unidos en la Lucha (CTUL). With the help of CTUL, Miceli was able to recover wages stolen by an employer, but in the end he received only 10% of what he was owed. “It is real people who suffer the consequences the way things are right now,” added Miceli.

…

Based on complaints filed with the Minnesota Department of Labor and Industry (MNDLI), an estimated 39,000 Minnesota workers are not paid what is owed to them in earned wages each year. In 2015, the last year data was compiled, the Department recovered $1.3 million in back wages for Minnesota workers. MNDLI, as well as labor and community organizations, maintain the scope of the problem is much larger since most workers don’t report wage theft violations, many out of fear of retaliation from their employer.

“There are no repercussions for some of the worst offenses that we see in the construction industry and I am here today hoping legislators support HF6,” said Arturo Hernandez, a journeyman carpenter with Carpenters Local 68. “If I stole money from my boss at work, I would go to prison.”

(Read More)

Support Prevailing Wages in Greater Minnesota

Posted by National Alliance for Fair Contracting on

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! ”

(Watch Video)

Local Impact of Prevailing Wage (MN)

Posted by National Alliance for Fair Contracting on

September 06, 2018 10:41 PM
(ABC 6 News)

When a construction worker goes to work on a project with a private contractor, the contractor decides what workers will be paid. However, when they work on a government-funded project, workers must be paid “prevailing wages.”

President of South Eastern Minnesota Building and Construction Trades Council Nate O’Reilly says for every construction project funded by the state, workers must be paid a minimum base rate called “prevailing wage.”

“When public dollars are being spent…it creates that level playing field to ensure the public expenditures reflect the local area standards for wages and benefits,” said Nate.

In the private construction industry, the lowest bidding contractor almost always gets the construction job. Executive Director of the Fair Contracting Foundation Mike Wilde says prevailing wage is intended to protect local workers and ensure they get paid fairly. This prevents the job from going automatically to whoever can do it the cheapest, which Mike says is often workers from out of the area.

…

“You want people that live in the area, perhaps reside in the housing, and support the economy. You want them to be your workforce, as opposed to people who might come in and do unskilled, unsafe, and insufficient work and perhaps take the wages out,” said Mike.

(Read More)

Minnesota Wage Growth Exceeds Neighbors & Rest of United States (MN)

Posted by National Alliance for Fair Contracting on

Date: September 12, 2018
Author: Frank Manzo IV

Chicago: A trio of new research studies shows that more people are joining unions in Minnesota and that wages in the Gopher State are growing faster than the neighboring states of Illinois and Wisconsin, as well as in the rest of the United States.

Produced by the Midwest Economic Policy Institute with researchers from the University of Illinois at Urbana-Champaign, University of Minnesota, University of Wisconsin-Madison, and University of California-Irvine, the annual State of the Unions Research series profiles unionization rates and hourly wages in Minnesota, Illinois, and Wisconsin.

Based on data from the U.S. Department of Labor and U.S. Census Bureau, the studies offer a comparative window into the economic effects of different state-level approaches to labor and economic policy.

“While the rise of right-to-work laws and other national economic trends are no doubt impacting unionization and wage growth, differences in state-level policymaking can either accelerate or blunt these broader trends,” said Midwest Economic Policy Institute Policy Director Frank Manzo IV. “The data shows that Wisconsin’s model has produced lower wages and slower wage growth, while Minnesota’s has had the opposite effect.”

…

The reports highlight economic data over the last decade, at a time when Wisconsin opted for more austerity and weakened labor standards- specifically placing limits on collective bargaining (Act 10), repealing prevailing wage, and enacting a so-called “right-to-work” law.

Despite a budget crisis and efforts by its Governor to pursue an agenda similar to Wisconsin’s, the authors note that Illinois has largely maintained a status quo, augmented by the City of Chicago’s decision to raise its minimum wage.

(Read More)

(Report: State of the Unions – Minnesota)

(Report: State of the Unions – Wisconsin)

(Report: State of the Unions – Illinois)

Study: Prevailing Wage Strengthens Minnesota’s Economy & Promotes a Skilled Workforce (MN)

Posted by National Alliance for Fair Contracting on

School Project Data Shows the Law Boosts Local Hiring and Has No Effect on Construction Costs

Date: July 16, 2018
Author: Frank Manzo IV

St. Paul: In the wake of Michigan’s controversial decision to repeal its prevailing wage law, new research shows that Minnesota’s prevailing wage law boosts the economy by almost a billion dollars every year, creates 7,200 jobs, strengthens apprenticeship programs, increases local hiring by 10%, and has no significant effect on the overall cost of publicly-funded construction projects. The research was completed by the Midwest Economic Policy Institute and University of Colorado State University-Pueblo economist Dr. Kevin Duncan.

“This study brings important, new evidence that Minnesota’s prevailing wage law maintains wages and benefits for Minnesota’s construction workers, reducing their need for public safety programs and helping to keep these working families in the middle class, and it does this without a detectable impact on public construction costs,” said University of Minnesota labor economist Dr. Aaron Soujourner. Soujourner is a former economic adviser to President Trump and President Obama who performed a peer review of the research.

Prevailing wage functions as a local minimum wage for different types of skilled construction work. It is typically applied to publicly-funded projects like roads, bridges, and schools, and is based on what skilled craft workers in the community are most often paid for comparable work. The state’s average full-time, blue-collar construction worker currently earns about $48,000 per year.

“Prevailing wage is a win-win-win for Minnesota taxpayers, the state’s economy, and the construction industry,” said study co-author and Colorado State University-Pueblo economist Kevin Duncan. “While the data consistently shows that overall project costs and bid competition are not affected by the law, its impacts on wages, local hiring, welfare reliance, workforce productivity, and the overall stability of the labor market are especially significant.”

The study analyzed more than 600 winning bids for school construction projects in the Twin Cities region between 2015 and 2017. While the majority of bids did not include prevailing wages, there was no statistically significant difference in the average total cost of prevailing wage bids and non-prevailing wage bids. However, prevailing wage bids utilized 10% more local subcontractors.

“In terms of project costs and local hiring, the new data out of Minnesota mirrors what’s been seen in other states,” said study co-author and Midwest Economic Policy Institute Policy Director Frank Manzo IV. “A repeal of Minnesota’s prevailing wage law would not save money, but it would export more tax dollars to businesses from out of town.”

(Read More)

(PDF Copy of Full Report)

(Executive Summary)

(Key Findings)

VIDEO: Protecting Prevailing Wages (MN)

Posted by National Alliance for Fair Contracting on

By Filiberto Nolasco Gomez
Workday Minnesota
October 1, 2018

MINNESOTA – 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.

“Working people in Minnesota are preserving part of the middle class through prevailing wage laws. Unfortunately, these laws have recently been repealed in several states, including Wisconsin, because some political leaders claim that construction wages are too high. Support the skilled people who build Minnesota; support your local economies; and support prevailing wages!”

(See Video)

unnamed

On issue of prevailing wage, Minnesota succeeds where neighboring states have failed (MN)

Posted by National Alliance for Fair Contracting on

By Frank Manzo IV and Kevin Duncan. July 30th, 2018

A legislative virus that is shrinking middle-class incomes, eliminating jobs and causing skilled workforce shortages is spreading across the Midwest. It’s called repeal of state prevailing wage laws.

Prevailing wage laws establish local minimum wage rates for the skilled workers that build our schools, highways, bridges and other critical infrastructure Since 2015, three Midwest states (Michigan, Wisconsin and Indiana) have repealed their prevailing wage laws, and even more have tried to weaken them.

Minnesota has not. And a growing body of evidence tells us why the Gopher State has it right.

First, eliminating prevailing wage doesn’t save taxpayers money. Recent research out of Indiana showed no difference in construction costs before and after repeal of prevailing wage. Additionally, that state’s Assistant Republican House leader has publicly acknowledged that repeal “hasn’t saved a penny.” This is because labor represents only 23 percent of the total cost of a construction project. It is simply not possible to find significant cost savings by cutting worker wages and benefits.

Instead, research shows that when you eliminate the wage floor, any savings disappear due to a host of new problems. For example, arbitrary wage cuts discourage local skilled workers from pursuing careers in the construction trades; and these workers are often replaced by lower-skilled workers from out of town. Costly impacts in the form of lower productivity, more jobsite injuries and increased reliance on social safety net programs more than offset any savings from paying lower wages.

And repeal invites even larger consequences for the local economy.

In a study released this month, we examined hundreds of school construction bids over a three-year period in the Twin Cities area. We found that prevailing wage increases the share of construction value completed by local contractors by 10 percent. If prevailing wage were to be repealed, the tax dollars that employ local workers – and the ripple effects from their spending as consumers – would be exported out of the local community. In fact, we found that Minnesota’s prevailing wage law ultimately strengthens the economy and creates 7,200 jobs statewide.

(Read More)