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The Aftermath: Developments from the 2022 Session of the Connecticut General Assembly Affecting Employers

Posted by National Alliance for Fair Contracting on

June 22, 2022
JD Supra

The 2022 Regular Session of the Connecticut General Assembly concluded on May 4, 2022.  While not as groundbreaking as the two last full legislative sessions, and while many far-reaching bills that emerged from committee were not passed by the legislature, important bills regarding employee free speech (i.e., the much vaunted “captive audiences” legislation) and employment protections with respect to domestic violence were enacted. …

PREVAILING WAGE ENFORCEMENT

Public Act 22-17 (“An Act Concerning Wage Theft”) authorizes (as of July 1, 2023) the Connecticut Commissioner of Labor to issue increased fines and citations (i.e., $5,000 per violation) to contractors and subcontractors who violate the state’s “prevailing wage” laws. The Act requires the Commissioner to maintain a list of contractors/subcontractors that during the three preceding years violated the prevailing wage laws or entered into a settlement with the Commissioner to resolve such claims. For each contractor/subcontractor on this list, the Commissioner shall record: 1) The nature of the violation; 2) the total amount of wages and fringe benefits making up the violation or agreed upon in any settlement; and 3) the total amount of civil penalties and fines. The Commissioner shall review the list each year for the preceding rolling three-year period and may refer for debarment any contractor/subcontractor that committed a violation during this period. The Commissioner shall refer for debarment any contractor/subcontractor that entered into one or more settlement agreements where the total of all settlements within the period exceeds $50,000 in back wages or fringe benefits or civil penalties or fines. Any such contractor/subcontractor may request a hearing before the Commissioner to contest such a finding.

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Murphy Administration Provides Guidance to Public Entities on Recent Changes to Prevailing Wage Laws

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Department of Labor & Workforce Development
June 21, 2022

TRENTON – With the summer construction season upon us, the Murphy Administration is reminding local governments and school boards of their role in protecting workers and expanding skilled apprenticeship programs, and their obligations under the New Jersey Prevailing Wage Act.

The New Jersey Department of Labor and Workforce Development (NJDOL) and its partners at the New Jersey Department of Community Affairs’ Division of Local Government Services (DLGS), and the New Jersey Department of Education (DOE), recently sent a letter reminding local governments and boards of education of their responsibilities under the New Jersey Prevailing Wage Act.

The New Jersey Prevailing Wage Act (N.J.S.A. 34:11-56.25 et seq.) establishes a prevailing wage for workers engaged in public work to safeguard workers and employers alike from unfair competition due to detrimental wage levels. The act requires the payment of minimum rates of pay to laborers, craftsmen, and apprentices employed on public works projects. Covered workers must receive the appropriate craft prevailing wage rate as determined by the Commissioner of Labor and Workforce Development.

“We have a responsibility to safeguard our workers and protect employers paying fair compensation and developing our workforce from being undercut by unfair competition,” said Labor Commissioner Robert Asaro-Angelo. “Our most important partners are the public bodies themselves who must also follow the law. Public contracting is a privilege, not a right, and it comes with certain responsibilities to other employers and our whole workforce.”

“Building a stronger and fairer New Jersey means ensuring that every hardworking individual in New Jersey receives the wages they should be earning in accordance with the law,” said Lt. Governor Sheila Oliver, who serves as Commissioner of the Department of Community Affairs. “This letter serves as a reminder to employers that wage theft and unfair competition will not be tolerated in New Jersey.”

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Notice of Proposed Revision to the Davis-Bacon Survey Collection

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Today, June 10, 2022, the Wage and Hour Division (WHD) submitted to the Office of the Federal Register for publication a notice of proposed revision to the information collection titled “Report of Construction Contractor’s Wage Rates.” WHD is proposing changes to the WD-10 form to improve the overall efficiency of the Davis-Bacon and Related Acts (DBRA) survey process. The proposed changes aim to streamline the collection of data required for the survey and make the collection less burdensome for respondents. The proposed revision rearranges questions and data requests to enable respondents to quickly gather and report information.

WHD is also proposing to add a new WD-10A collection instrument, which is a companion form to the revised WD-10 form. This new form will primarily be used pre-survey to identify potential respondents that performed construction work within the survey period in the survey area so that the Department can more effectively solicit survey participation.

There are 71 DBRA laws applicable to federal and federally assisted construction projects that require the payment of locally prevailing wage rates to approximately 1.2 million U.S. construction workers. The requirements currently apply to approximately $217 billion in federal and federally assisted spending on construction each year.

The DBRA requirements also protect workers under the unprecedented federal investments in infrastructure across the country. These projects involve clean energy, power and water infrastructure improvements, legacy pollution remediation, and renovation to the nation’s broadband and transportation infrastructures.

WHD encourages interested parties to submit comments on this proposal. Interested parties will have 60 days to submit their comments following notice in the Federal Register. Please submit comments by email to WHDPRAComments@dol.gov or by mail to the Division of Regulations, Legislation, and Interpretation, Wage and Hour Division, U.S. Department of Labor, Room S-3502, 200 Constitution Avenue NW, Washington, DC 20210.

For more information on WHD’s proposed revision, please visit the U.S. Department of Labor’s website. A complete listing of the proposed changes to the information collection is posted at https://www.dol.gov/agencies/whd/government-contracts/construction/surveys/wd10pra.

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NY rail company to pay overtime violations on projects in Massachusetts

Posted by National Alliance for Fair Contracting on

By: Ashley Shook
May 16, 2022

BOSTON (WWLP) – A New York-based rail system company was issued a citation and will pay more than $220,000 for overtime and payroll violations on projects in Massachusetts.

According to the Massachusetts Attorney General’s Office, Railworks Track Systems, Inc. and its President Gene J. Cellini, will pay more than $220,000 in restitution and penalties to resolve allegations that it failed to pay the proper overtime rate to workers on public works projects in the Berkshires, on Cape Cod, and in Framingham, and failed to submit accurate certified payroll records, Attorney General Maura Healey announced.

Restitution will be provided for 84 employees that were not paid properly for five railroad improvement projects in Hyannis, Falmouth, Framingham, Great Barrington, Lee, Lenox, Pittsfield, Sheffield, and Stockbridge.

“Companies must pay their employees the wages they’ve earned and are legally entitled to,” said AG Healey. “We are pleased to have secured this relief for the more than 80 affected workers, and hope that this sends a message to employers that we hold them accountable if they do not properly compensate their workers.”

The Attorney General’s Office received a referral in 2020 from the Foundation for Fair Contracting of Massachusetts, alleging that Railworks Track Systems was improperly paying its employees. The investigation revealed the payroll records did not include employee addresses, and that the company claimed a type of fringe benefit that is not permitted under Massachusetts prevailing wage laws. The fringe amounts were paid, but the amounts did not include overtime.

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Maine labor coalition scores major legislative win creating renewable energy jobs

Posted by National Alliance for Fair Contracting on

April 29, 2022
Dan Neumann

The Maine Labor Climate Council, a new coalition made up of a dozen unions from across the state representing a variety of different industries, won its first major victory in the Maine Legislature this week.

The top priority bill for the council this session, LD 1969, introduced by Rep. Scott Cuddy (D-Winterport), went into law without Gov. Janet Mills’ signature on April 25. The law will require prevailing wages and equity standards on all large, utility-scale renewable energy projects including solar, wind, tidal, geothermal and hydropower. …

The new law mandates that contractors pay the prevailing wages customary for each occupation in an industry. The new law will also build a career path for Mainers wanting to get into the clean energy sector by developing pre-apprenticeship programs that will help them access union-registered apprenticeship programs.

LD 1969 also incentivizes employee ownership of renewable energy construction projects as well as the use of Projects Labor Agreements — pre-hire negotiated agreements that require strong labor standards regarding wages, hours, working conditions and dispute resolution methods. The law directs the Maine Public Utilities Commission to consider these factors when acquiring energy under Maine’s renewable portfolio standard, a law that establishes the portion of electricity sold in the state that must be supplied by renewable energy resources.

Maine’s renewable portfolio standard (RPS) establishes the portion of electricity sold in the state that must be supplied by renewable energy resources.

With the passage of the new law, Maine joins other states like Connecticut, Illinois, New York and New Jersey that have recently passed strong labor and equity standards in the renewable energy sector.

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New York Appeals Court Confirms Construction Flaggers Must be Paid Prevailing Wages 

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NEW YORK, April 21, 2022 /PRNewswire/ — A New York appeals court ruled in favor of a class of flaggers who worked for Judlau Contracting Inc., a subsidiary of multi-billion dollar infrastructure contractor OHL Group. The court affirmed that Judlau flaggers who worked on New York public works projects since April 26, 2011 are entitled to recover prevailing wages. The flaggers are represented by Pelton Graham, an employment law firm with offices in New York and California.

This historic decision upholds the rights of not only the hundreds of flaggers who worked on Judlau public works projects but potentially thousands more New York flaggers who have been chronically underpaid. More information on this decision and its implications is available here: https://peltongraham.com/prevailing-wages-for-new-york-flaggers/.

Judlau flaggers worked on a variety of public works construction projects in New York City and upstate New York, including water main, sewer, and other utility repair and maintenance projects requiring street excavation. Even though they worked alongside union construction workers who received prevailing wages, flaggers were often paid just a few dollars over minimum wage rather than the union rate.

Pelton Graham has represented the flaggers since the case was first filed in New York Supreme court in 2017. Even though the flaggers were classified by Judlau as “pedestrian crossing guards,” the flaggers demonstrated that their main responsibility was protecting the safety of the public and construction crews near the job sites and, under the guidelines from the New York City Comptroller, they should be paid as construction laborers.

After years of litigation, the court ruled in favor of the flaggers, finding that the evidence clearly showed that Judlau flaggers worked as safety flaggers and for that reason were eligible for prevailing wages for all of their work performed on New York public works construction sites.

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Illinois lawmakers pass a bill they believe will help stop wage theft

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By Andrew Hensel – Illinois Radio Network
April 9, 2022

Illinois lawmakers have passed a measure supporters say will help combat wage theft amongst constructions workers.

House Bill 5412 was introduced by state Sen. Cristina Castro, D-Elgin. She said the measure would help workers collect wages from subcontractors that have not been able to pay.

If a subcontractor fails to pay an employee, HB5412 states that an employee can file a legal claim with the general contractor for any unpaid wages and benefits.

The bill was met with heavy debate on the last day of the legislative session.

“I think there was a lot of confusion from the opponents on what a current law did or did not do compared to this,” Castro said. “All this does is add another avenue for someone to seek to be reimbursed for lost wages.”

Castro went on to say that this bill ensures workers’ wages are paid.

“This measure will ensure that the hardworking individuals who are employed by subcontractors receive fair compensation should that subcontractor fail to pay them,” Castro said.

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Burlington creates wage rules for construction workers on city projects. What that means

Posted by National Alliance for Fair Contracting on

April Fisher
Burlington Free Press
Jan. 19. 2022

Burlington construction workers have won new wage regulations.

The city of Burlington passed an ordinance update Jan. 10 that requires all city-funded construction projects that cost more than $100,000 to be carried out by workers who are paid at or above Vermont’s prevailing wage.

The state prevailing wage for construction workers ranges from $14.48 to $41.44 per hour, depending on the specialization of labor. The state minimum wage is $12.55 per hour.

The new amendment is an addition to Burlington’s “Responsible Contractor” ordinance, which also requires city construction contractors to provide workers’ compensation insurance, have a responsible company safety program, and meet related standards.

The amendment was passed unanimously by the City Council after months of pressure from labor union alliances including the Vermont Building and Construction Trades Council and Vermont State Labor Council, AFL-CIO.

“Ordinances such as these have been adopted throughout the country and have proved to be effective in protecting taxpayers dollars, ensuring the public only pays for quality construction projects that simultaneously stimulate our local economy,” said Vermont AFL-CIO president David Van Deusen.

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Attorney General James and DOI Commissioner Strauber Deliver $900,000 to 200 NYCHA Construction Workers Denied Fair Pay

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Office of NY Attorney General Leticia James
Press Release – April 4, 2022

Lintech Electric Failed to Pay Employees the Prevailing Wage Rate on NYCHA Projects

NEW YORK – New York Attorney General Letitia James and New York City Department of Investigation (DOI) Commissioner Jocelyn E. Strauber today announced their joint efforts to combat wage theft by securing nearly $900,000 for more than 200 workers who were underpaid by Lintech Electric (Lintech). An investigation found that over the course of three years, Lintech disregarded the prevailing wage rate and underpaid its employees by almost $900,000 on multiple New York City Housing Authority (NYCHA) projects in all five boroughs. As a part of the agreement, Lintech will repay the impacted workers the money they were cheated plus interest and will be banned from public works projects in New York for five years.

“Every worker deserves fair pay for their hard work,” said Attorney General James. “The prevailing wage was established for a reason — to protect the hardworking New Yorkers who built our city and keep it functioning. No employee should fear that they will be cheated at the hands of greedy employers, especially at the expense of the public good. I am proud to finally return the money owed to these dedicated workers and I will do everything in my power to ensure that Lintech does not deceive or exploit any more workers.”

“Lintech, a subcontractor for general contractors hired by NYCHA through its guarantors, agreed to pay almost $900,000 to workers that it underpaid for over three years, in violation of New York’s Prevailing Wage Law,” said DOI Commissioner Jocelyn E. Strauber. “I applaud the workers who alerted DOI of this underpayment, prompting an audit that exposed this wrongful conduct. As a result of this joint investigation by DOI and Attorney General James’ office, Lintech will also be banned from New York public works projects for five years. DOI and its law enforcement partners will pursue and hold accountable employers that seek to cheat workers of their rightful wages, and we will ensure that those victims are made whole. I thank the state attorney general and NYCHA for their partnership on this important investigation.”

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Baltimore increases prevailing wage for construction trades

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By: Daily Record Staff
March 18, 2022

Baltimore Mayor Brandon Scott and members of the Board of Estimates (BOE) approved an increase in the city’s prevailing wage for workers in the construction trades.

The increase would boost the base rate for laborers from $8 per hour to $22 per hour, totaling an approximate rate of $43,000 annually. The Prevailing Wages for Workers Under Construction Contracts law, among other things, requires workers to be paid regularly and no less than the approved prevailing wage.

This decision comes after the Baltimore City Wage Commission, housed within the Office of Equity and Civil Rights (OECR), reviewed the 2021 wage rates – and years prior – compared to wages for similar trades in surrounding jurisdictions.

This process was guided by an equitable lens, in line with Scott’s commitment to leveling the playing field in Baltimore, even for the city’s most overlooked workers. As a result, it was determined that the rates for laborers needed to be significantly increased.

This increase pertains to Baltimore construction contracts with a minimum value of $5,000 and applies to laborers, mechanics and apprentices working in all construction trades. The Baltimore City prevailing wage law can be found in the Baltimore City Charter, Article 5, Subtitle 25.

(See Article)