Polis signs wage theft bill into law

Posted by National Alliance for Fair Contracting on

June 10, 2022
by Robert Davis | The Center Square

(The Center Square) – Colorado Governor Jared Polis signed a bill Thursday that increases penalties for businesses that withhold earned wages from workers without warrant.

Senate Bill 22-161 classifies wage theft as criminal theft and imposes automatic penalties of up to twice the withheld amount or $1,000, whichever is greater, against employers who violate the law. It also requires employers to pay an estranged employee’s earned wages within 14 days of receiving a written demand.

The bill was sponsored by Democrat Sens. Jessie Danielson, D-Wheat Ridge, and Sonya Jacquez Lewis, D-Boulder, and Reps. Monica Duran, D-Wheat Ridge, and Meg Froelich, D-Englewood.

“Wage theft is far too prevalent in Colorado, and it often hits working families the hardest,” Danielson said in a statement. “It’s essential that we support the folks who work hard to keep Colorado’s economy running. This law will ensure workers receive the full wages they have earned.”

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Employers Misclassifying Workers as Independent Contractors: A Six-Pack of Employee Misclassification Laws

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The National Law Review
Friday, January 24, 2020

… Gov. Murphy signed 6 new laws that address the misclassification issue and provide for significant liabilities for those employers found to have misclassified workers. …

A 5838 – Stop Orders

Under this law, the New Jersey Department of Labor (“DOL”) is now empowered to issue stop-work orders against any employer who is found to be a violation of “any State, wage, benefit and tax law.” This would include failure to pay wages required by law and misclassification of a worker as an independent contractor. The stop-work order would require the cessation of all business operations at the place where the violation exists. …

A 5839 – Additional Penalties

… New penalties are now available against employers who misclassify workers. The new law provides an administrative “misclassification penalty” of up to $250 for each misclassified employee for first violations, and up to $1,000 per employee for each subsequent violation. In addition, a penalty will be paid to the misclassified worker of “not more than 5 percent of the worker’s gross earnings over the past twelve months from the employer who failed to properly classify them.”

A 5840 – Joint Liability

… Gov. Murphy amended the Wage Theft Act so that there is also joint and several liability when the state employment tax laws are violated. So, if you use contract employees and your contractor improperly classifies its workers as independent contractors, you could be liable for all the fines, penalties, and damages resulting from this misclassification.

A 5843 – Notice Posting

This law requires employers to post in the workplace a notice of the prohibition against misclassifying workers, the benefits and protections available to employees and the remedies available under all of the new laws. The DOL is tasked with developing and issuing a form of notice for employers. The law also … provides a private cause of action for employees who are retaliated against. Finally, any employer who violates any part of this law shall be guilty of a disorderly person’s offense and pay fines between $100 and $1,000. …

S 4226 – DOL Website Posting

This law permits the DOL to post on its website the name of any person who is found to be in violation of any state wage, benefit, or tax law, and who has had a final order issued against them by the DOL Commissioner. …

S 4228 – Tax Data Sharing

This law permits the State Division of Taxation to share with the DOL the following information (which was previously deemed confidential): tax information statements, reports, audit files, returns, or reports of any investigation for the purpose of labor market research or assisting in investigations pursuant to any state wage, benefit or tax law.

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Renewed Push Coming for Worker Misclassification Crackdown

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by Scott Braddock | September 26, 2019

Later this year, Democrats in the US House of Representatives plan to restart their push to penalize companies that compensate their workers as independent contractors when, by law, they should be classified as employees and compensated as such.

Of course, there are many legitimate uses of contract labor. But the issue arises when employers abuse the classification to skirt payroll taxes and benefits like health care and retirement plans.

Unscrupulous employers often use the practice to be able to submit much lower bids for projects, undercutting responsible contractors. Several states have already passed laws to penalize those who cheat workers and taxing agencies in this way. California is pressing ahead with major reforms and Texas, several years ago, passed a targeted crackdown on misclassification on taxpayer-funded construction.

Bloomberg has more on the new push by House Democrats in Washington:

The bill comes as Uber, Lyft, and other gig economy companies have been embroiled in legal disputes over their classification of workers as independent contractors. That designation means the workers aren’t protected by minimum wage and overtime pay requirements, don’t have the right to unionize, and aren’t eligible for workers’ compensation and unemployment insurance benefits.

Gig companies recently led an unsuccessful lobbying blitz against a new California law that makes it harder to classify workers as contractors.

Classification questions have also plagued construction and a wide range of other industries.

Previous versions of the bill would have amended the Fair Labor Standards Act to require employers to accurately classify workers and double the liquidated damages for unpaid wages owed to those wrongly treated as contractors. The bill also would have banned businesses from retaliating against workers for challenging their classification.

Here is a copy of the bill as proposed.

(See Article)

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General Assembly approves increasing penalties for bad contractors (RI)

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POSTED BY: SANDY MCGEE JUNE 21, 2018

PORTSMOUTH, R.I. – In a major win for consumers, the General Assembly recently passed legislation (2018-H 7443, 2018-S 2607) that distinguishes penalties for licensed contractors, who fail to comply with Contractors’ Registration and License Board (CRLB) orders.

The new legislation imposes penalties for contractors operating without proper licenses or registration.

The legislation was introduced by Rep. Dennis M. Canario (D-Dist. 71, Portsmouth, Little Compton, Tiverton) and Sen. Paul W. Fogarty (D-Dist. 23, Glocester, Burrillville, North Smithfield) at the request of Attorney General Peter F. Kilmartin.

“Negligent and bad contractors not only waste consumers’ money, but there are also significant safety concerns that can arise with inferior or substandard contractor work. This bill will protect consumers’ wallets and health while also holding bad contractors responsible for their actions,” said Representative Canario.

“The public must have a real means to defend against fraudulent or shabby contractors. Today we are putting some teeth in the law to ensure that people get the restitution they deserve and to send a clear message to those who would fleece the public that they will be held accountable,” said Senator Fogarty.

“The number one consumer complaint filed with our office is against contractors who do shoddy work, or worse, fail to do the work at all,” said Attorney General Kilmartin. “Until now, our hands – and the hands of the CRLB – were tied because there was no legal avenue to hold these bad contractors accountable once the criminal sentence expired. This act gives our Office and the CRLB much-needed tools to protect homeowners and ensure that all contractors are playing by the rules. This is a great win for consumers.”

The legislation amends RIGL Section 5-65-19 (“penalty for operating without a registration – failure to comply with a final order of the board – repeat offense a felony”) to provide that any person who violates a final order of the CRLB where the monetary total of the order including, but not limited to, the monetary judgment and/or fines, is not more than $5,000, upon proper written notification, is deemed guilty of a misdemeanor, and, upon conviction, shall be imprisoned for a term not exceeding one year, fined not more than $1,000, or both.

Where the monetary total of the order is $5,000 or more, upon written notification, is deemed guilty of a felony, and, upon conviction, shall be imprisoned for a term not exceeding 10 years, fined not more than $10,000, or both. The imprisonment time for those persons found to be a repeat offender would be increased from up to 5 years to up to ten years.

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LYNN COUNCIL VOTES TO PENALIZE CONTRACTORS WHO VIOLATE STATE LABOR LAWS

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BY THOMAS GRILLO

March 27, 2018

LYNN – The City Council adopted a sweeping ordinance Tuesday night to prohibit contractors who violate the state’s labor laws from doing business with the city.

In a unanimous vote, the 11-member panel approved a measure to bar employers who have failed to pay their workers from obtaining city contracts.

Before the meeting, more than 100 union protesters rallied in front of City Hall urging the City Council to vote yes.

“Wage theft hurts all of us, including honest businesses who are underbid and undercut by businesses that cheat the system,” said Kathryn Cohen, an organizer with the North Shore Labor Council. “Taxpayers lose as much as $200 million in tax revenue annually. Here in Lynn we are saying enough.”

Two hours later, the council adopted the regulation that would also impact developers who have received a tax break from the city.

“Someone has to speak up for the workers,” said City Councilor Peter Capano. “We’ve put a lot of serious thought into this.”

…

But Cynthia Mark, chief of the attorney general’s Fair Labor Division, testified that her department, which consists of 13 lawyers and 20 investigators, could use the help a local law would provide.

Over the last two years, her office has received 40 complaints about Lynn companies and has recovered $80,000 in wages, she said.

“We welcome your partnership,” she told the council. “We can’t do it alone.”

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NYC quadruples penalties, ramps up scrutiny of construction site safety violations

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By Emily Peiffer
February 12, 2016

Dive Brief:

  • New York City Maybor Bill de Blasio announced Friday the city will quadruple penalties for serious construction site safety violations, mandate new supervision at construction sites, and start a safety sweep of more than 1,500 work sites throughout New York.
  • The heightened focus on construction safety issues comes one week after a crane collapsed in New York City, killing one pedestrian and injuring three others. The incident, which is still under investigation, also resulted in de Blasio implementing a new, four-point construction crane safety plan.
  • The new safety provisions are included in a $120 million Department of Buildings effort to increase oversight at high-risk sites. Under the new measure, safety violation penalties will go from $2,400 to $10,000, and penalties for sites without a required construction superintendent will go from $5,000 to $25,000.