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Non-Union Contractor Caught Shaving $50/hour Off Worker Paychecks on City Funded Project in NY

As contractor on the Sugar Hill housing project in Harlem, MountCo construction was supposed to be paying its workers the prevailing wage (nearly $65 an hour).  The reality? Workers on the project were making closer to $15 and being forced to lie about their earnings to inspectors who were there to monitor the company because of its history of failing to do so.

Construction of taxpayer subsidized projects is big business, regulated to ensure maximum positive economic impact on the community.  The name of MountCo’s non-union game, sadly, is inflating profits by drastically underpaying workers. The city is now looking to recover nearly $300,000 in back wages owed to the workers, the New York Daily News writes.

Workers told NDN that on that day of the project’s press conference completion, they were kept in the top half of the building so they would not be seen by the press or reveal to the Mayor the problems with the contractor.  What’s worse, many of them were paid for only half days and told the reason was how little work there was to do on those top floors.

“They told us we had to work on the ninth floor or higher. We couldn’t work any lower than that. They were going to tell us when we could go downstairs,” one worker, who did not want to be identified, told The News. “They wouldn’t let us see him.”

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Construction Company Owner Sentenced for Fraud Conspiracy in Connection with Renovation of McCormack Federal Building

Construction company owner sentenced for fraud conspiracy in connection with the renovation of the John W. McCormack Post Office and Courthouse in Boston.

Wael Isreb, 55, of Wrentham, was sentenced by U.S. District Court Judge George A. O’Toole, Jr., to four years of probation, including 18 months of home confinement, and ordered to pay $164,627 in restitution. In March 2014, Isreb and his co-defendant, Aluisio Dasilva, 67, of Hudson, Mass., each pleaded guilty to conspiracy to commit mail fraud and false statements.

Isreb was the owner of Taunton Forms, a now-defunct concrete construction company based in Lakeville, Mass. In September 2006, the General Services Administration retained Suffolk Construction Company as the general contractor to renovate the McCormack Building. Suffolk Construction, in turn, retained Taunton Forms as a subcontractor to perform certain concrete work on that project. Suffolk Construction ultimately paid Taunton Forms in excess of $1 million for its work.

Federal law requires that contractors on federal projects over $2,000 pay workers a prevailing wage, and that they submit weekly reports certifying the wages they paid their employees. Beginning in about December 2007, however, Isreb conspired with Dasilva and others to pay Taunton Forms workers less than the prevailing wage while certifying to Suffolk Construction, the GSA, and the United States Department of Labor (DOL) that Taunton Forms was, in fact, paying the prevailing wage.

Mass. Window Company Settles Prevailing Wage Law Allegations

BOSTON (Legal Newsline) – Massachusetts Attorney General Martha Coakley announced a $109,000 agreement on Tuesday with an Easthampton window company to resolve allegations it violated the state’s Prevailing Wage Law.

R&R Window Contractors Inc. allegedly failed to pay the proper prevailing wage and failed to submit true and accurate payroll records connected with several public works projects throughout the state.

“The prevailing wage law ensures a level playing field for contractors and their workers who build our public schools, libraries, police stations and other public facilities,” Coakley said. “The enforcement of these laws protects workers’ rights and our taxpayer dollars.”

Coakley’s Fair Labor Division received complaints alleging that R&R was not properly paying workers performing glazier and carpentry work under the prevailing wage laws.

Between June 1, 2010 and March 28, R&R allegedly failed to pay some of its workers the correct prevailing wage rate and failed to submit true and accurate certified payroll records to the awarding authorities on nine of their public works construction projects.

R&R fully cooperated with Coakley’s inquiry and agreed to pay more than $109,000 in restitution and penalties to 43 current and former employees.

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Comptroller Scott M. Stringer Settles Prevailing Wage Dispute For More Than $435,000

New York, NY – New York City Comptroller Scott M. Stringer announced an agreement this week between National Insulation & GC, Corp. and the Office of the New York City Comptroller, Bureau of Labor Law, in which the company admitted to willfully and knowingly failing to pay two employees a prevailing wage for contracted work with the Department of Education (DOE). National Insulation will pay a fine of $435,666.72, including more than $39,000 in civil penalties to the City, as a result of the settlement.

“We have found that all too often, employees are fleeced out of money to which they’re entitled by unscrupulous contractors looking to cut corners,” Stringer said. “These employees worked hard for their salaries and they deserve to get every cent that’s rightfully owed to them.  My office will continue to pursue these bad actors that fail to provide a legal wage.”

The two employees, Francisco Ayala and Angel Ribadeneira, were hired by National Insulation to perform insulation work at New York City public schools between December 2006 and November 2010. An investigation by the Comptroller’s office into National Insulation, prompted by a DOE referral and evidence provided, revealed allegations of under reporting hours, misclassification of workers, and use of “ghost workers” on sites.

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AISD Adopts Davis-Bacon Prevailing Wage Schedule, Plans to Conduct Living Wage Floor Study

In a split vote at its June 16 meeting, Austin ISD’s board of trustees adopted the federal Davis-Bacon prevailing wage schedule as the schedule AISD uses to pay construction workers, and the board pledged to conduct an additional study to determine a living wage for workers.
Pipe fitters, laborers and representatives from Austin Interfaith and AISD employees union Education Austin urged the board to adopt Davis-Bacon and stop using what they called an outdated wage rate schedule, while others called Davis-Bacon “flawed” and asked the board to postpone the vote.

Kayvon Sabourian, an attorney with the Austin nonprofit Equal Justice Center, has said the state allows school districts two options-adopting federal wage rates or conducting a wage rates study. The board in January approved a consent agenda item to put its own study in place, and AISD currently uses wage rates based on a study conducted in 2005, he said.

Sabourian told the board he has represented construction workers whose prevailing wage rates have been violated on AISD projects.

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New York’s De Blasio Seeks to Drop Wage Law Challenge

New York Mayor Bill de Blasio is seeking to drop his predecessor’s challenge to a law requiring landlords and companies getting economic aid from the city to pay workers the same wages as employees of its contractors.

The city asked state Supreme Court Justice Geoffrey D. Wright in court papers today to void his ruling from August of last year invalidating the prevailing wage measure, saying the court failed to recognize the city’s authority to incorporate wage standards into its commercial transactions.

The city council passed the bill 44-4 in May 2012 over former Mayor Michael Bloomberg’s veto. Bloomberg sued the council two months later, saying the requirement would increase costs and was pre-empted by the state’s minimum-wage law.

The law requires any company receiving at least $1 million in economic development aid from the city to pay its workers the prevailing wage — the rate set by law for each trade or occupation for employees of contractors who do public works projects and building service work for government agencies.

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Lansing Prevailing Wage Law Upheld in Michigan Court of Appeals Decision

LANSING — A prevailing wage law passed by the city of Lansing does not violate the Michigan Constitution nor home rule restrictions passed by the Michigan Legislature, a divided Michigan Court of Appeals panel decided Wednesday.

The decision overturns a lower court ruling in favor of Associated Builders and Contractors, which had challenged the Lansing ordinance as unconstitutional, and says a 1923 court decision that barred cities from setting prevailing wage laws has been superseded by decisions over the last 90 years.

Lansing’s ordinance requires contractors working on city construction projects to pay a prevailing wage, which ABC had challenged as being outside the city’s authority under state law. ABC also cited a 1923 Michigan Supreme Court decision that barred the city of Detroit from enforcing a prevailing wage law. That opinion concluded that unless the state had given cities the authority to set such laws, cities could not enact rules governing wages.

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(Copy of Decision)

Contractor Will Pay Thousands in Back Wages for Auburn Activities Center

Eleven workers underpaid for their effort on an Auburn activity center will share nearly $43,000 in wages owed to them under a settlement between the state and the construction company involved.

The Washington State Department of Labor & Industries (L&I), Attorney General’s Office and RJL Construction LLC reached the agreement on May 8, prior to an administrative hearing. As part of the settlement, RJL is barred from working on future public works projects.

The Kent-based construction firm employed carpenters, iron workers, cement masons and power equipment operators who were wrongly paid at the rate of general laborers. It was concluded that the workers weren’t paid for overtime or the correct “prevailing wage,” the amount under state law the contractor is required to pay for specific work on a public project.

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HUD Tells Canton to Make Up Prevailing Wage Difference

If you’re a construction worker who helped build Goodwill’s Canton campus in 2009, you may be getting a small check from the city.
The U.S. Department of Housing and Urban Development is forcing the city of Canton to pay $31,000 in wages to some workers who built Goodwill’s campus at 408 Ninth St. SW.
HUD, in an audit of the city’s federal spending of Community Development Block Grant funds, found that the city never enforced a requirement that construction workers be paid the prevailing wage. The prevailing wage is the hourly wage, plus overtime and benefits, paid to a majority of workers in a particular area. It is set by the U.S. Department of Labor.

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.”

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