AG: Company failed to pay correct wages at Bresnahan, other public works jobs

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Bresnahan School one of public works projects involved

Staff Reports
July 13, 2017

NEWBURYPORT – A New Hampshire construction company was fined more than $160,000 in restitution and penalties for failing to properly pay employees on nine public works projects, including Bresnahan Elementary School, the attorney general said Wednesday.

Attorney General Maura Healey’s office issued three citations against Northeast Partition Specialties Inc. and owner Fredrick Breth for their failure to pay the prevailing wage, pay overtime and submit accurate certified payroll records for the projects done in 2014-15.

“Companies that do business in Massachusetts must play by the rules,” Healey said. “Prevailing wage laws are intended to ensure a level playing field for companies and provide a real, living wage to workers.”

Northeast is a small, privately held corporation in Manchester, New Hampshire.
The Attorney General’s Office began an investigation of the company after the Fair Labor Division received a complaint from a former employee claiming he was not paid the prevailing wage rate for two public works projects between April 2015 and September 2015.

The investigation found that Northeast failed to pay the proper prevailing wage rate to 27 employees for these public works projects: Staff Sergeant James J. Hill School, Revere; Bresnahan Elementary School, Newburyport; the Acushnet police facility; the Chelmsford Fire Department; Dracut Town Hall; the Sudbury Police Department; Park Avenue Elementary, Webster; West Bridgewater Middle-Senior High School; and the Westborough Fire Department.

…

Under the Massachusetts Prevailing Wage Law, contractors and subcontractors working on public projects must pay their employees a special minimum wage, which is based on the occupational classification for the type of work the employees perform.

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Construction workers walk off Omni Louisville site protesting wage discrepancy

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By CAITLIN BOWLING
May 24, 2017 12:53 pm

 

Some of the construction workers who are helping erect the more than $320 million Omni Louisville hotel and luxury apartments walked off the site this morning.

Roughly 100 workers who have been installing metal studs and hanging drywall at the Omni claim that they are being paid roughly $20 less an hour compared with other construction workers on the job, WDRB News first reported.

Marco Cruz, one of the workers who walked off the construction site, told Insider that he is not so much upset that they are making less than other workers as he is troubled by the fact that they were told they’d earn $24 an hour but are only receiving $17 to $20 an hour.

“I saw that that’s not right,” he said. “We feel like they are taking advantage of us.”

Louisville labor attorney Dave Suetholz told Insider in a phone interview that the construction workers, most of whom are Hispanic immigrants, were told that their wages were lowered because Gov. Matt Bevin repealed Kentucky’s prevailing wage statute this year.

Suetholz, an attorney with Kircher, Suetholz & Associates PSC, argued that construction on the Omni “started before the repeal of the prevailing wage,” making the argument invalid.

“Their employer has lied to them,” he said. “It’s all immigrant workers. They are the only ones being paid lower rates. …Just on the face, it looks very bad.”

The prevailing wage law required construction workers to be paid a wage and receive benefits comparable to what workers receive on average construction sites in the area. It applied to public construction projects, according to an article by Stites & Harbison attorney Joseph L. Hardesty.

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Ohio House eyes prevailing wage law for public works projects

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By Marc Kovac, staff writer
Published: May 9, 2017 3:50 PM

COLUMBUS – The Ohio House launched hearings Tuesday on legislation that would give local communities discretion on whether to follow the state’s prevailing wage law on public works projects.

Backers of HB 163 and companion legislation in the Ohio Senate say the proposal stops well short of an outright repeal, as has been attempted in the legislature in past sessions.

Instead, Rep. Kristina Roegner (R-Hudson) said, it would give affected local governing authorities the power opt out of “state-mandated wage” requirements.

…

But Democrats on the Economic Development, Commerce and Labor Committee voiced concern about the bill Tuesday. Rep. Thomas West (D-Canton) questioned whether the bill would lead to fewer jobs, lower wages and more people needing public assistance.

“Is this bill worth losing billions of economic activity…?” he asked.

And Rep. Michele Lepore-Hagan (D-Youngstown) asked whether it would be more appropriate to increase local government funding.

Union groups also do not support the change – according to the Ohio State Building & Construction Trades Council, Ohio’s prevailing wage law “protects and preserves local area wages on federal and state construction projects. It guarantees that workers are paid fairly.”

Matt Szollosi, executive director of the Affiliated Construction Trades of Ohio, who attended Tuesday’s hearing, said his group is “adamantly opposed” to the legislation.

“Based on data that we have from a recent study that was commissioned and completed by professors at Kent State University, Bowling Green State University and Colorado State University, a severe weakening or repeal of prevailing wage would result in construction workers’ incomes being reduced by 16 percent and would push a significant percentage of construction workers below poverty level and onto public assistance,” he said.

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Video: Indiana GOP Leader Admits Repealing Prevailing Wage ‘Hasn’t Saved a Penny’

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With Senate Committee Set to Vote on Repeal Bill, April 24 Video Debunks Prevailing Wage Supporters’ Claims about Savings
PRESS RELEASE · MAY 2, 2017
MEDIA CONTACT | MIKE BROWNE
DEPUTY DIRECTOR

MADISON, Wis. – With the Republican-controlled Senate Labor Regulatory Reform Committee poised Wednesday morning to vote for a misguided repeal of prevailing wage laws for public works projects, video has surfaced from a forum April 24 in Milwaukee where Republican Indiana House Assistant Majority Leader Ed Soliday angrily reveals that similar legislation passed in Indiana which went into effect in 2015 “hasn’t saved a penny.”

“We got rid of prevailing wage and so far it hasn’t saved a penny,” Soliday says during the question and answer session last week hosted by the Wisconsin Transportation Development Association in Milwaukee. “Probably the people most upset with us repealing [prevailing] wage were the locals. Because the locals, quite frankly, like to pay local contractors and they like local contractors to go to the dentist in their own town.”

One comprehensive analysis showed repealing Wisconsin’s prevailing wage laws will result in a projected $500 million in construction value being completed by out-of-state contractors on an annual basis and a yearly total of over $1.2 billion being lost due to reduced economic activity. A second analysis revealed 885 public construction jobs left Indiana after repeal of prevailing wage and 770 jobs popped up across the border in Kentucky.

One Wisconsin Now Executive Director Scot Ross said he “wasn’t surprised the Wisconsin Republicans are using lies and deception to level yet another attack on Wisconsin workers.” Ross said the list of Republican co-authors on the bill was “a who’s who of Wisconsin’s anti-worker extremists.”

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(See a Copy of Video Here)

A.G. Schneiderman Announces Arrest Of Public Works Contractor Charged With Wage Theft Of Nearly $700K

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Defendant Allegedly Failed To Pay $691,040 In Prevailing Wages And Benefits To Ten Workers Performing Construction On Bronx Public Schools.

BY LONG ISLAND NEWS & PR – PUBLISHED: MAY 03 2017

New York, NY – May 3, 2017 – Today, Attorney General Eric T. Schneideman and New York City Comptroller Scott M. Stringer announced the arrest of contractor Vickram Mangru on charges that he underpaid wages and benefits to workers on a publicly-funded New York City construction project. The arrest is part of an ongoing investigation into widespread allegations of prevailing wage theft at New York City public works projects.

Contracted to perform work on several New York City Department of Education (NYCDOE) public schools in the Bronx between December 2012 and April 2014, Mangru – while doing business as Vick Construction out of Valley Stream, New York -was charged with allegedly cheating six workers out of $301,683 in wages. Vick Construction and Mangru had previously been debarred and banned for a five-year period from performing public work projects by the New York City Comptroller’s Office for failing to pay proper prevailing wages to workers. On December 31, 2013, Mangru entered into a settlement agreement, admitting he underpaid workers by $34,347 in prevailing wages and supplements.

Undeterred, Mangru allegedly continued to operate in several public schools and continued to pay well below proper prevailing wage rates, forming AVM Construction in January 2014. AVM Construction was purportedly owned by Mangru’s son Ravi Mangru and his wife Gayatri Mangru, who both claimed to be the company’s president. However, according to workers, Mangru ran the day to day operations of AVM Construction, including directly supervising the work and paying employees.

Between April 2014 and February 2015, Mangru is alleged to have continued working on multiple NYCDOE school projects in the Bronx. An investigation determined that Mangru, now operating under the umbrella of AVM Construction, allegedly failed to pay proper prevailing wages to ten workers on those school projects by an additional $389,357 during the ten-month period.

In total, Mangru allegedly failed to pay $691,040 in prevailing wages and benefits to ten workers, from December 2012 to February 2015.

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Open Letter from City Leaders Calls for Prevailing Wages in State Housing Reforms

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Thu, 18 May 2017, 17:53:20 EDT | Source: Smart Cities Prevail

SACRAMENTO, Calif., May 18, 2017 – In an open letter that ran as a full page ad in today’s Sacramento Bee, elected leaders from six of California’s eight largest cities called on California Governor Jerry Brown and the State Legislature to include prevailing wage standards in state housing reforms. The ad was paid for by Smart Cities Prevail (SCP).

The state Legislature is considering myriad ideas for reform. One that has generated a lot of push-back from the building industry is incorporating prevailing wage standards into more residential projects.

Smart Cities Prevail (SCP) is a non-profit research organization that focuses on wage policies and contracting standards in the construction industry. The ad was signed by a group of local elected officials from the cities of San Diego, Los Angeles, San Jose, San Francisco, Oakland, and Sacramento.

The ad references ongoing efforts to streamline more housing development – with several proposals under consideration to combat California’s persistent housing affordability crisis again this year.

“Real housing reform needs to do more than simply streamline more development,” the leaders write. “We need to promote investment in the people who are doing the building, and struggling to pay the rent in our communities.”

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Housing Affordability Prevailing Wage Standards Can Help Improve Housing Affordability

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STUDY: LINKING PREVAILING WAGE STANDARDS WITH HOUSING REFORMS WOULD CLOSE AFFORDABILITY GAP

Alex Lantsberg, MCP, AICP

A brand new study by Smart Cities Prevail shows that linking prevailing wage standards with proposed reforms to streamline new housing development would close the affordability gap, save state and local governments tens of millions of dollars annually, and disproportionately benefit communities of color.

Overall, the study notes that it takes 13% more workers today to match the residential housing output that California enjoyed just twenty years ago. This steep decline in productivity has been matched by a 25% decline in inflation-adjusted blue-collar construction wages (the median wage is just $35,000 per year) and housing prices that have soared as high as 54% in the Bay Area.

“A productivity renaissance will be necessary to produce housing units in the numbers that will noticeably shave what Californians pay for housing,” said study author Alex Lantsberg. “Studies have repeatedly shown that the best way to realize that goal is by incorporating prevailing wage standards.”

Prevailing wage is a minimum wage for blue-collar construction work that reflects local market rates for different skilled crafts. Long associated with stronger economic outcomes and more local hiring, most research shows that prevailing wages have no significant impact on total project costs because they promote higher skilled craftsmanship. This triggers increases in productivity and efficiency as high as 15%, reduced reliance on taxpayer funded public assistance programs, and prevents workforce shortages by helping to fund the apprenticeship programs that are used to meet California’s construction workforce training needs.

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(Full PDF Copy of Study)

Stand up for vets by rejecting prevailing wage repeal

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Josh Wallis
Published 7:23 p.m. CT April 15, 2017

Despite all the election year rhetoric about lifting wages and taking care of veterans, Missouri legislators are considering doing just the opposite by repealing our prevailing wage law.

A repeal of prevailing wage will hurt Missouri veterans, our economy and the construction industry. It won’t save money, either.

This is not hyperbole. It is literally what the research tells us.

Prevailing wage is a minimum wage for publicly funded skilled construction work. In fact, it is the local market rate, based on surveys that reflect what workers in different skilled trades actually earn in the community. Prevailing wage laws were enacted by Republicans more than 80 years ago to promote local hiring and quality workmanship. When it comes to tax dollars and our critical infrastructure, both of these virtues are important.

Construction skills are also vital to the work our military does in places like Iraq and Afghanistan. Our service men and women are trained for project leadership, maximizing productivity, and as members of teams that depend on efficiency. In addition to fighting, we also help rebuild schools, roads and bridges.

In fact, the military provides more than one in five registered apprenticeships in the U.S. today. So, not surprisingly, veterans are far more likely to pursue careers in the skilled construction trades than non-veterans. Prevailing wage standards actually increase these trends by making these occupations more than jobs – but genuine middle-class career pathways.

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Rep. Pocan: Repealing Wisconsin’s Prevailing Wage Laws Will Take Money Out of People’s Pockets

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State Senate proposal will do little to improve Wisconsin roads and could undercut wages throughout the state

Apr 25, 2017 – Press Release

MADISON – U.S. Rep. Mark Pocan (WI-02) released the following statement after the Wisconsin state senate heard arguments on a bill to repeal the state’s prevailing wage laws.

“Once again, Governor Scott Walker and Wisconsin Republicans are putting corporate cash and the 1% ahead of working families. This bill to eliminate prevailing wage requirements for public projects will literally take money out of people’s pockets and could allow companies to bring low-wage workers from out of state, undercutting wages throughout our state.

“We also know this legislation will do little to improve Wisconsin’s roads, which are ranked as one of the worst in the country. I hope my former colleagues in the Wisconsin legislature see this for what it is, another boost for big business that winds up costing working Wisconsin families, and reject it.”

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Prevailing wage repeal: Hurting blue-collar wages or saving tax dollars?

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MARK SOMMERHAUSER
Apr 25, 2017

Critics of a proposal to fully repeal the state’s prevailing wage laws decried it Monday as an assault on the wages of blue-collar workers, while proponents framed the move as frugal stewardship of public funds.

A state Senate panel gave the proposal its first legislative hearing Monday.

If enacted, it would mark another crushing defeat for Wisconsin labor unions. They, along with legislative Democrats, are among the staunchest backers of a prevailing wage, a minimum wage requirement for workers on public construction projects.

The bill would eliminate all state-imposed prevailing wage requirements for projects funded by the state. That includes state office buildings, University of Wisconsin System buildings and state highway projects.

…

Two who testified against the bill were Leroy Miller, a heavy equipment operator from New Berlin, and Luke Burnaman, a crane operator from Portage. Both are union members and U.S. military veterans.

Both men said they’re concerned about how prevailing wage repeal could affect veterans, who they and others who spoke Monday said are disproportionately represented in the building trades.

Burnaman said he and his family moved to Wisconsin from his native Louisiana last year, lured by the prospect of higher wages and better schools for his children.

He questioned why senators would mull prevailing wage changes after recently having increased their own expense reimbursements. State Senate leaders earlier this year approved a 31 percent increase in their daily per diem amount – up to $115 per day, compared to $88 per day last year, the Appleton Post-Crescent reported.

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