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Pennsylvania returns over $3.5 million in wages to wronged workers in 2021

Posted by National Alliance for Fair Contracting on

Monday, January 3rd 2022
By Kurt Martone

HARRISBURG, PA. (WENY) — The Pennsylvania Department of Labor and Industry investigated over 4,000 alleged labor law violations requested from Pa. workers in 2021. The department returned over $3 million worth of missed wages to workers across the Commonwealth.

“Pennsylvania workers are entitled to every dollar they earn, and that’s why the department’s Bureau of Labor Law Compliance works so hard to hold employers accountable when they wrongfully withhold wages or violate any of Pennsylvania’s labor laws,” said Jennifer Berrier, secretary of the Pennsylvania Department of Labor and Industry.

WENY reached out to the Department of Labor and Industry to find the amount of lost wages given to residents of Bradford and Tioga counties.

Since 2015, the department has collected over $38 million in unlawfully held wages for workers in Pennsylvania.

BY THE NUMBERS:

The bureau returned over $2 million to workers employed by 900 employers in violation of the Wage Payment and Collection Law.

One million dollars was returned to workers whose employers violated the Prevailing Wage Act.

The other, over $500,000, in missed wages was returned to workers whose employers violated the Minimum Wage Act.

(See Article)

Why Philadelphia Needs a Department of Labor (PA)

Posted by National Alliance for Fair Contracting on

OSCAR PERRY ABELLO
MARCH 3, 2020

Nadia Hewka has been fighting against wage theft pretty much since the day she first came to work at Community Legal Services of Philadelphia – in 1997. Then, the term “wage theft” wasn’t yet the established term. The going phrase at the time was “underpayment of wages.”

“It just doesn’t capture what’s happening,” Hewka says. “People’s labor and hours and time are being stolen when their wages are stolen.”

Wage theft comes in a few different forms. Employers may refuse to pay workers, pay them less than minimum wage, refuse to pay overtime, undercount workers’ hours or otherwise fail to pay workers for hours that qualify as work under the law. Employers may require workers to work before and after their shifts or before or after they have clocked in, without compensation.

All those forms of wage theft are already illegal, by state or federal law, or both. But enforcing those laws has been another story. Enforcing worker rights, from wage theft and beyond, has long depended on victims taking employers to court. Often, employers don’t get caught because not every wage-theft victim has the time and resources to meet with lawyers, give extensive depositions and go through a legal battle in court.

Wage theft most affects low-wage workers. In a landmark 2015 study from the Sheller Center for Social Justice at Temple University Beasley School of Law, which looked at wage theft across Pennsylvania, researchers found that in the five-county Philadelphia metropolitan area alone, every year an estimated 128,476 low-wage workers experienced minimum wage violations, 105,458 experienced overtime nonpayment violations, and 83,344 experienced off-the-clock violations. That report helped fuel the campaign in 2016 to finally make wage theft illegal at the local level in Philadelphia.

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Gov. Wolf Highlights Efforts to Improve Workforce Development in Pennsylvania, Cuts Ribbon on Northeast Philadelphia Workforce Development Center (PA)

Posted by National Alliance for Fair Contracting on

March 05, 2020

Governor Tom Wolf today helped cut the ribbon on Toben Center, Northeast Philadelphia’s first comprehensive workforce development center. He was joined by Sen. Christine Tartaglione, Rep. Jared Solomon and representatives from Toben Center tenants PhillyWorks, Harcum College, and Northeast Learning Center to celebrate this new piece of workforce development, which builds upon programs already established by the Wolf Administration and proposed as part of Gov. Wolf’s 2020-21 Budget.

“Workforce development is one of my highest priorities because Pennsylvanians can’t get good jobs without the training they need, and businesses can’t succeed without trained workers,” Gov. Wolf said. “Last year, I signed an executive order creating the Keystone Economic Development and Workforce Command Center. I tasked a group of leaders from labor, business and government with identifying hurdles that prevent workers from finding good jobs, and businesses from finding good workers. The Toben Center will serve as a ladder up for residents of Northeast Philadelphia’s neighborhoods and it will strengthen the business community by creating a stronger pool of educated, skilled workers.”

Gov. Wolf’s budget proposes $12 million for competitive grants to address employment barriers and a $2 million increase for WEDnetPA, which helps businesses with training to upskill existing employees. The investments will continue the progress already made on overcoming the hurdles the Command Center identified that can prevent workers from success, including transportation, child care, re-entry, licensure and training. Many of these are addressed by services offered at the Toben Center.

The governor’s innovative workforce development initiative PAsmart launched two years ago and has invested $30 million to expand hands-on job training through career and technical education, registered apprenticeships and Next Generation Industry Partnerships. The number of apprentices registered with the Department of Labor and Industry annually has tripled since 2015 when the Apprenticeship and Training Office was created.

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“Governor Wolf’s dedication to workforce is evident through these types of strategic partnerships, which he spoke of in his recent State budget address,” said H. Patrick Clancy, president and CEO at Philadelphia Works. “As the State’s largest workforce board, we strive to stay aligned with the Governor’s priorities. The location of the Toben Center directly addresses transportation access and gaps in workforce training. The services provided in the center ensure that education and workforce resources are accessible at the same time, in the same space, lessening the burden on career seekers. In workforce, we work better together.”

(Read More)

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State, Delco join forces to battle construction misclassifications (PA)

Posted by National Alliance for Fair Contracting on

Alex Rose
Mar 10, 2020

CHESTER – Delaware County District Attorney Jack Stollsteimer joined state Attorney General Josh Shapiro Monday in announcing a novel joint pilot program aimed at combatting the misclassification of construction workers through criminal prosecutions.

Stollsteimer explained that Act 72 of 2011, also known as the Construction Workplace Misclassification Act, was designed to protect construction workers from being forced to misidentify as “independent contractors” rather than employees and provides certain monetary penalties.

Misclassification of workers across numerous industries is a problem not only for employees who should be receiving certain benefits, but also for society at large when payroll tax, unemployment insurance and workers compensation go unpaid.

“Whether you’re a laborer or not, this issue impacts you in a big way, in a really big way, and we will not tolerate it,” Shapiro told a group of about 30 labor leaders and politicians assembled at the Laborers Union 413 hall on Penn Street.

Much of the problem can be laid at the feet of dishonest “labor brokers” who recruit workers and send them out to fill temporary positions for contractors or subcontractors. The brokers are supposed to take care of things like pay, tax withholdings and workers compensation coverage, but often forgo those formalities, pay workers under the table and pass the savings on to contractors who can then undercut legitimate competitors.

Shapiro said that in 2019, 163 construction employers misclassified 1,347 employees in Pennsylvania – and those were just the ones the state knows about. Those workers represented $27.2 million in underreported wages that could have been taxed for things like roads or schools, Shapiro said.

But he added that the Pennsylvania Department of Labor and Industry collected only $531,000 in administrative penalties from those companies, which he deemed “the cost of doing business” for unscrupulous employers.

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Shapiro said the partnership with the district attorney’s office is key to that approach because Act 72 allows for the attorney general only to bring misdemeanor and summary charges against offenders. The district attorney’s office, on the other hand, might be able to pursue felony charges for things like wage theft or labor trafficking.

(Read More)

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Philadelphia City Council votes to make the Department of Labor permanent, expand its powers (PA)

Posted by National Alliance for Fair Contracting on

The independent department will provide much-needed oversight for the new slate of labor laws enacted in the last couple years

By Nigel Thompson
February 14, 2020

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On Feb. 13, Philadelphia City Council unanimously passed new legislation to change the city charter and create a permanent Department of Labor within city government to help enforce some of the previously mentioned legislation.

The bill was introduced by councilmembers Helen Gym and Bobby Henon, and co-sponsored by councilmembers Kendra Brooks, Isaiah Thomas, Cindy Bass and Kenyatta Johnson.

“We intend to be a city that really, truly upholds the rights of all people,” said Gym before moving to adopt the bill.

In addition to enforcement, the permanent Department of Labor within city government will also be charged with investigating complaints, and educating workers about their rights and employers of their responsibilities to employees.

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OAG Brings Criminal Charges Against Company, Owner for Wage Violations (PA)

Posted by National Alliance for Fair Contracting on

By Christopher D. Carusone, Steven M. Williams and
Carl L. Engel | January 14, 2020 at 12:50 PM

Employers in Pennsylvania should stay on their toes as the Pennsylvania attorney general (AG) announced charges against a major mechanical contractor engaged in numerous public works projects for crimes arising from a prevailing wage dispute. This marks the first time that the attorney general has brought criminal charges for prevailing wage violations, which was previously enforced only through civil actions. …

Although the new crime called “prevailing wage theft” has not been created in Pennsylvania, the attorney general charges that Good and Goodco violated existing criminal statutes prohibiting deceptive or fraudulent business practices, theft by unlawful taking, theft by deception and other related crimes. While the Office of the Attorney General (OAG) historically has enforced prevailing wage laws through civil action, the charges against Goodco mark the first time that the OAG has sought to enforce them with criminal penalties. Cases of this nature are being prioritized by the OAG’s recently formed fair labor section. When Shapiro ran for AG in 2016, he pledged to create a unit that would “enforce Pennsylvania’s labor laws in partnership with the Department of Labor & Industry and the Pennsylvania Human Relations Commission,” among other pro-worker actions. Accordingly, the fair labor section has made a mission of fighting wage theft, tip stealing, worker misclassification and workplace discrimination.

(Read More)

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George Wade Bridge: painting contractor sentenced to 46 months’ imprisonment (PA)

Posted by National Alliance for Fair Contracting on

by: Kara Urland
Posted:
Aug 16, 2019 / 11:24 AM EDT

HARRISBURG, Pa. (WHTM) – The U.S. Attorney’s Office announced that the painting contractor for the George Wade Bridge Project, Andrew Manganas, age 61, of Canonsburg, Pa., and Panthera Painting, Inc. was sentenced to 46 months’ imprisonment followed by five years’ on supervised release.

Manganas is charged for theft from union plans, wire fraud, and discharge of pollutants into the Susquehanna River. Judge Sylvia H. Rambo also fined Manganas $20,000 and Panthera Painting, Inc. $200,000.

In September 2009, PennDOT awarded a contract for rehabilitation work on the George Wade Bridge to J.D. Eckman as the prime contractor. In October 2009, Panthera Painting was awarded a subcontract by Eckman that covered the blasting, resurfacing, and painting of the structural steel on the George Wade Bridge.

The federal oversight and funding of the contract required each contractor and subcontractor to submit Certified Payroll Reports for every worker and every pay period to certify that the appropriate wage was being paid to each worker.

Manganas and Panthera Painting, Inc. pleaded guilty in January 2018, to submitting false payroll reports that did not accurately reflect the amount workers were being paid.

By under-reporting wages paid, Manganas defrauded the federal agencies paying for the bridgework. By failing to properly remit wages to the unions, Manganas effectively stole money from the workers and the union.

“Andrew Manganas enriched himself by cheating his workers and their unions, and defrauding the U.S. government,” said Michael T. Harpster, Special Agent. “The FBI and our partners will continue to investigate and bring to justice those playing fast and loose with federal funds.”

(Read More)

District Attorney Krasner Announces New Labor Liaison to Bolster Protections for Workers (PA)

Posted by National Alliance for Fair Contracting on

by Construction Citizen | October 11, 2019

Philadelphia District Attorney Larry Krasner announced the creation of a new Labor Liaison position in the Philadelphia District Attorney’s Office (DAO) to support the Economic Crimes Unit in investigating and prosecuting crimes against workers. Assistant District Attorney (ADA) Danielle Newsome has been appointed to the position, which is the first of its kind in the City of Philadelphia.

An experienced labor attorney, ADA Newsome will focus on crimes including wage theft, purposeful misclassification to avoid payment of benefits and wages, labor trafficking, worker’s compensation fraud, and unemployment compensation fraud.

“I am proud to appoint ADA Danielle Newsome our first ever labor liaison in the Economic Crimes Unit. Her experience and knowledge about workers’ rights and vulnerabilities to exploitation will increase our ability to prosecute crimes committed against people who historically had few avenues to seek justice,” District Attorney Krasner said. “Employers have enormous power over people, particularly low-wage and undocumented workers, and must be held accountable when they abuse that power, break the law, and take advantage of the vulnerable. The addition of labor liaison ADA Newsome to the District Attorney’s Office will help us make sure workers know their rights and that employers know their responsibilities under the law.”

Prior to joining the DAO in September 2019, Newsome was staff attorney for the Health Professionals and Allied Employees Union, American Federation of Teachers (AFT), which is New Jersey’s largest healthcare union. Newsome began her legal career as an associate at the Philadelphia labor and employment law firm of Willig, Williams & Davidson where she represented a variety of public and private sector unions and individual workers. She has also worked as an organizer with unions including the United Food and Commercial Workers (UFCW) and the AFT.

“I’m excited to be in this new position and to have the opportunity to protect some of the most vulnerable workers in our city, while we send the message to unscrupulous employers that their conduct will not be tolerated,” ADA Newsome said. “Through my experience as a labor attorney and my conversations with labor leaders across the region, the need for a labor liaison in the DAO is clear. I look forward to helping more vulnerable Philadelphians secure justice with the overall goal of improving labor conditions across the city, because this kind of work benefits all workers, regardless of their industry.”

(Read More)

Lawmakers: Misclassifying workers costing millions in revenue (PA)

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Bucks County Reps. John Galloway, Perry Warren and other area legislators support bills that would address the problem of misusing the independent contractor designation.

By Chris English
Posted Sep 4, 2019 at 3:11 PM

Misuse of the independent contractor designation for workers, primarily in the construction industry, is costing the state and federal governments a combined total of about $300 million in lost revenue, two local state lawmakers said during a news conference Wednesday.

State Reps. John Galloway, D-140, and Perry Warren, D-31, are pushing for passage of two pieces of legislation that would address the problem. One, House Bill 716, would establish a joint agency task force on employee misclassifications. The group would investigate the practice and work toward creating solutions to reduce misclassification throughout Pennsylvania. That bill recently passed the House 198-0, Galloway said.

The other proposed bill, HB 715, would among other provisions tighten the definition of what constitutes an independent contractor to only allow use of the term if a worker’s written contract is project and time specific, with no exceptions.

Also attending the news conference, held at Galloway’s Falls office, to speak in support of the bills were Bryan Allen, chief of staff for state Rep. Tina Davis, D-141, of Bristol Township; Amy Masgay, legislative assistant for state Sen. Steve Santarsiero, D-10, Lower Makefield; and union carpenter Kevin Morrow of Perkasie.

Improperly designating workers as independent contractors gets employers out of paying health and worker’s compensation insurance. If those workers are injured, those needs are often taken care of by the state or federal governments and that places additional burdens on taxpayers, Galloway and Warren said.

Misclassifying workers also leads to the nonpayment or underpayment of state and federal income taxes, they added. The millions in lost revenue could be going toward improving schools and infrastructure and other areas, the two lawmakers said.

“This is done deliberately to cut labor costs, pay less in taxes and avoid paying our working class a fair compensation,” said Galloway, of Falls. “This is a practice that hurts the workers who are entitled to the benefits they’ve rightfully earned, their families that they work hard to provide for, and our economy.

“Employee misclassification is nothing less than theft from our families, friends, neighbors and coworkers, and it creates an uneven playing field for law abiding businesses.”

The state has laws on the books to address the problem, but they aren’t strong or detailed enough and the state Department of Labor doesn’t have enough “boots on the ground” to properly enforce them, Galloway said.

(Read More)

Prevailing wages are important to workers, contractors and taxpayers (PA)

Posted by National Alliance for Fair Contracting on

by: Jack Ramage
Posted:
Aug 16, 2019 / 12:00 AM

The Aug. 11 letter “High Gas Tax Feeds a Broken System” by Nathan A. Benefield, in response to the Aug. 4 article “Why Is Pa.’s Gas Tax So High? We’ve Got a Lot of Roads,” identifies three reasons. He is correct on two of those reasons; Pennsylvania gas taxes fund mass transit operations and pay for much of the state police budget, not just roads. Prevailing wages however, are not a contributing factor.

Prevailing wages do not increase the cost of publicly funded construction projects. In those states that have repealed prevailing wage laws, the promise of lower-cost public construction projects never materialized. Casually concluding that eliminating prevailing wage requirements will automatically reduce construction costs is an out-of-touch misconception of today’s economic environment.

Every segment of the economy is competing desperately for qualified workers. Allowing contractors to lower construction workers’ wages in order to gain an unfair advantage over the competition will cause a race to the bottom and exacerbate the shrinking workforce crisis resulting in costlier projects, substandard workmanship and delayed completions due to a shrinking number of skilled workers in construction. States throughout the country are reporting shortages in skilled construction labor. These shortages are especially acute in states where prevailing wage laws have been repealed.

Prevailing wages create a level playing field by establishing reasonable wages and benefits for workers building our state’s infrastructure projects. Without prevailing wages, unscrupulous contractors will import cheap labor and eliminate good paying jobs for the citizens of Pennsylvania, creating an environment where no one wins: not the workers, not the local contractors and, most of all, the taxpayers of Pennsylvania.

(See Article)