NY Sets Classification Rules

New York has joined a growing number of states tackling the issue of employment classification for commercial truck drivers. Following through on a mandate in a bill passed in January, the state’s Department of Labor released new standards this week to clarify whether a driver is an employee or an independent contractor.

“The trucking industry is vital to how our state operates, from shipping materials that make our buildings, to parts and systems that keep us safe, to the food and products we use every day,” says New York Commissioner of Labor Peter Rivera. “For too long, truck drivers have sought to have a clear standard. This law provides clarity for employers and truckers.”

Demolition Company Operators Sentenced In Manhattan Federal Court For Scheme To Underpay Employees In Violation Of Federal Prevailing Wage Law

Preet Bharara, the United States Attorney for the Southern District of New York, announced that JOVER NARANJO, the owner and president of Enviro & Demo Masters, Inc. (“Enviro”), and LUPERIO NARANJO, SR., a foreman for Enviro, were sentenced today in Manhattan federal court to six and four years in prison, respectively, for perpetrating a scheme to underpay employees in violation of the federal prevailing wage law and for tampering with witnesses and using other people’s identities to further this scheme. Both defendants were convicted in November 2013 after a two-week trial before U.S. District Judge Jed S. Rakoff, who imposed today’s sentences.

 

Manhattan U.S. Attorney Preet Bharara said: “Today’s sentences ensure Jover Naranjo and Luperio Naranjo, Sr., will pay a steep price for underpaying their staff, abusing federal funds, and then lying to cover it all up – loss of their liberty.”

(Read More)

3d_money_construction_dreamstime_xxl_21903206

NYC: Firms building city-backed affordable housing repeatedly caught cheating workers out of wages

Last week, Mayor de Blasio promised to “lift up working families” with soon-to-be built affordable apartments the city is sponsoring on a vacant lot in Brownsville, Brooklyn.

 But at an affordable housing project a few blocks away, builder MDG Design and subcontractor F. Rizos, settled federal wage-cheating charges in April 2013 by agreeing to pay $960,000 in back wages.

Just one month later, MDG was hit with more wage-cheating charges on another city project, this time for $4.5 million in back wages, a city record.

Yet MDG was chosen by the former Bloomberg administration that very month to turn a city-owned warehouse in Williamsburg into 55 affordable apartments and stands to build hundreds more in the coming years.

Many taxpayer-funded developments in New York City require contractors and their subcontractors to pay “prevailing wages.” Some contractors jump through hoops to avoid this.

(Read More)

AG Announces Partnership to Combat Misclassification

NEW YORK – Attorney General Eric T. Schneider­­man has signed a memorandum of understanding that allows his office to cooperate with both the federal and New York Departments of Labor to battle worker misclassification.

The three offices will share information in an effort to catch employers that wrongly classify employees as independent contractors.

The move puts New York on board a federal initiative launched in 2010 as part of the Obama administration’s “Middle Class Task Force.” To date, California, Colo­­rado, Con­­nec­­ti­­cut, Hawaii, Illinois, Iowa, Lou­­isi­­ana, Maryland, Massachusetts, Min­­ne­­sota, Missouri, Montana, Utah and Wash­­ington have signed similar agreements. The initiative claims to have collected $18.2 million in back wages for over 19,000 employees.

(Read More)

In clash with Bloomberg, Quinn vows to appeal ‘prevailing wage’ law court ruling

Saying this was only a “minor setback,” City Council Speaker Christine Quinn and other members vowed Tuesday they would appeal a court ruling that struck down the “prevailing wage” law.

“Make no mistake, we will appeal and we will be victorious in our efforts,” Quinn said surrounded by members of Local 32BJ SEIU, which represents property service workers in the city.

(Read More)