unnamed

Crackdown on labor crimes in region intensifies (CA)

Posted by National Alliance for Fair Contracting on

By Heather Yakin
Posted Oct 17, 2019 at 6:22 PMUpdated Oct 17, 2019 at 7:55 PM

NEWBURGH – The battle against wage theft and other labor-related crimes is going regional, prosecutors and labor leaders said Thursday at Montefiore St. Luke’s Cornwall Hospital in Newburgh.

Orange County District Attorney David Hoovler ticked off some of the categories: prevailing wage fraud, failure to provide insurance or worker’s compensation, misclassifying workers in order to underpay them. Unscrupulous contractors who use those tactics can underbid ethical companies, putting the ethical people at a disadvantage, Hoovler said.

So when public works projects are put out to bid, he said, “I feel it’s my job to make sure local contractors, local bidders and local workers get a fair shake,” and to make sure workers get the right compensation and the employers pay their fair share of taxes.

According to the New York State Labor Department, in 2018 more than $35.3 million in fraudulently obtained money was returned to about 35,000 workers who had been the victims of wage theft or public work violations.

An undocumented worker who gets paid the wrong amount can’t seek help, said Alan Seidman, executive director of the Construction Contractors Association. And when an employer skimps on or skips insurance or worker’s compensation and an uninsured worker gets hurt on the job, taxpayers foot the medical bills.

Seidman talked about a case from about three years ago, on a project in the Town of Montgomery where an out-of-state contractor won the bid.

“A non-union ironworker from out of state, making probably $14 or $15 per hour, fell and ended up with a broken bone in his back,” Seidman said. “No one knew until he was wheeled in (to the hospital) that he had no insurance.”

The contractor fired the worker the same morning.

Hoovler said his goal is not necessarily to prosecute the offenders, some of whom aren’t aware of New York’s Labor Law requirements.

“We try to educate first, prosecute second, and ultimately get compliance,” he said. Wage theft, however, is a zero-tolerance matter.

(Read More)

Construction wages cut in half by new prevailing wage rules (MO)

Posted by National Alliance for Fair Contracting on

By KTTN News | 08/29/2019

According to Jeff Phillips, Communications and Outreach Manager of the Laborers International Union of North America in St. Joseph, construction workers in many rural Missouri counties are working for less this Labor Day holiday.

Missouri’s new prevailing wage law has cut wages for construction workers in many counties, sometimes by more than half. The new formula that calculates the wage for public works projects was approved by Missouri lawmakers last year and went into effect on July 1st.

One of the counties hardest hit was Grundy County in northwest Missouri. The new prevailing wage for construction laborers on building projects is $19.81 an hour, as compared to $39.56 an hour in 2018. Heavy highway laborers this year will earn $19.81 an hour, down from $40.63. The higher wage often included benefits like health insurance and pensions. The new wage applies to all construction crafts in Grundy County.

“This is not a union problem. It hits everyone who works construction, union, and non-union, across all trades,” said Jason Estes, Business Manager of Laborers Local 579 in St. Joseph. “These pay cuts are hitting many of our rural counties hardest, where construction wages are the best jobs available in these communities. These are the people and places who need these family-wage jobs most.”

The new law calculates the wage based on public works projects with more than 1,000 hours worked, and a project cost of more than $75,000. The wages are broken down into two categories: Building, which includes projects like schools, and state and local government facilities; and Heavy Highway, which includes any local, county, state or federal road or bridge.

(Read More)

bill-would-allow-cities-counties-to-opt-out-of-prevailing-wage

OPINION: Prevailing-wage repeal, not as benign as some would have you believe

Posted by National Alliance for Fair Contracting on

By: Dan Shaw
May 3, 2019 11:48 am

Prevailing-wage laws require that construction workers on public construction projects be paid the wages and benefits offered on similar jobs performed by local Wisconsin workers.

This is by no means an extreme idea. In fact, in a recent poll, 83% of the respondents who identified themselves as likely Wisconsin voters said they believe that bid prices for public works should take into account wages and benefits that are comparable to those paid in the same trades elsewhere in the state. Sixty-one percent specifically said they support prevailing-wage laws.

In other words, the public understands that public-works projects should stimulate the local and state economy by properly paying Wisconsin workers. John Mielke and the organization he runs, the Associated Builders and Contractors of Wisconsin, clearly disagree.

After the repeal of state prevailing-wage laws for municipal projects, we saw a nearly 40% increase from 2015 to 2018 in the number of out-of-state contractors winning municipal public works projects in Wisconsin. In 2018 alone, more than $160 million worth of municipal public-works projects were awarded to out-of-state contractors.

For every dollar of construction value that is completed by an out-of-state contractor, economic activity decreases by $2.26 in Wisconsin. In 2018, Wisconsin lost more than $361 million worth of economic activity by having out-of-state contractors perform these local taxpayer-funded projects. It is too soon to measure the effects of losing prevailing-wage protections on state-funded projects, but we can all assume the outcomes will be similar.

I agree with Mr. Mielke that the U.S. economy is growing and that contractors in Wisconsin are scrambling to find skilled workers. Simple principles of supply and demand require the wages of these workers to increase.

(Read More)

Evers takes aim at right-to-work law, seeks prevailing-wage protections (WI)

Posted by National Alliance for Fair Contracting on

By Michael Carroll
3-7-2019

Gov. Tony Evers has called for the repeal of Wisconsin’s right-to-work law and the restoration of prevailing-wage guarantees in public-works projects, despite critics’ concerns that those proposals could become a drag on the state’s economy.

The governor’s February budget blueprint supports the elimination of the state’s right-to-work statute, which restricts private employers from entering into agreements that compel union membership as a condition of employment or mandating the payment of dues to a labor union.

Evers also supports the restoration of the prevailing wage on state and local public-works projects to ensure that workers are not underpaid in comparison to employees performing similar tasks in the region.

…

Restoring the prevailing wage would be helpful to both the construction industry and the employees who work in it, according to Emspak. Allowing companies with public-works contracts to pay their workers less than their counterparts in a region means those firms are undercutting the competition by cutting labor costs, which in turn drives down wages and working conditions, he said.

Having the prevailing wage in place means the construction companies would be in a better position to focus on providing high-quality, skilled work at a competitive cost, according to Emspak.

Labor union officials generally support Evers’ proposals. Stephanie Bloomingdale, president of the Wisconsin AFL-CIO, said Evers’ budget blueprint strikes the right note for workers and the state’s economy.

“The repeal of right to work is a step towards a healthier middle class with strong union rights,” Bloomingdale said in a prepared statement. “Restoring prevailing wage and the right to a project labor agreement will grow our economy with family-supporting jobs while ensuring tour construction projects are completed safely on time and on budget.”

(Read More)

unnamed

Singleton Bill to Help Strengthen Prevailing Wage Clears Senate (NJ)

Posted by National Alliance for Fair Contracting on

December 17, 2018, 5:42 pm

TRENTON – Legislation sponsored by Senator Troy Singleton, which would allow the issuing of stop-work orders for failure to pay the prevailing wage, cleared the Senate today.

“Before all else, we must protect the rights of the men and women who are working hard each and every day to earn a decent and fair living,” said Senator Singleton (D-Burlington). “New Jersey has set a high standard for how we treat our workers, and if you contract with the state on public works projects, you must be prepared to abide by that standard.”

The bill, S-2557, would permit the Commissioner of the Department of Labor and Workforce Development to issue a stop-work order against an employer upon determining an employer has paid a worker less than the prevailing wage.

The stop-work order would apply to every site where the violation continues to occur. It could only be lifted by the commissioner if the department finds the employer has agreed to pay future wages at the required rate, return any back-wages owed to workers and pay any penalty assessed by the department. The commissioner may also require the employer to file periodic reports for two years certifying its compliance with the prevailing wage law as a condition of lifting the order.

(Read More)

(View PDF Copy of Bill)

LABOR COUNCIL HOPES TO MAKE CONTRACTORS PAY IN LYNN (MA)

Posted by National Alliance for Fair Contracting on

BY THOMAS GRILLO|
November 28, 2017

LYNN – If a group of union organizers gets their way, contractors who violate the state’s labor laws would be barred from doing business with the city.

Three dozen members of the North Shore Labor Council, a coalition of 50 unions representing 18,000 workers, crowded a City Hall hearing room Tuesday to urge the City Council to adopt an ordinance that would prohibit the city from hiring companies who have failed to pay their workers.

“Our goal is to protect workers from being cheated and keep them from getting these contracts while helping honest businesses,” said Kathryn Cohen, an organizer with the North Shore Labor Council.

Of the 14 firms prevented from doing work for the state or municipalities for public construction or public works projects by the Attorney General Maura Healey’s office over the last two years, one is from Lynn. Since 2015, there have been 26,767 wage complaints and citations issued statewide, 69 to Lynn companies.

At issue is the failure of some employers to pay their employees for work performed. While the state prohibits employers who have violated labor laws from seeking government contracts, some are able to sign deals because no one is checking, Cohen said.

“We know some debarred contractors are still getting work and we need to strengthen enforcement,” she said.

Under the proposed ordinance, a volunteer Wage Theft Advisory Council would be appointed by the mayor and City Council. The six-member panel would review lists of companies who violate labor laws from the Attorney General’s office and sign off on the company seeking work from the city.

The Massachusetts Budget and Policy Center reports $700 million worth of wages go unpaid annually to about 350,000 Massachusetts workers. Of that number, $5.2 million in wages is recovered by the Attorney General’s Fair Labor Division.

Ward 6 City Councilor Peter Capano said the ordinance is crucial because without it, honest employers are at a disadvantage.

(Read More)

Ohio House eyes prevailing wage law for public works projects

Posted by National Alliance for Fair Contracting on

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.

(Read More)

Sen. Wallingford seeks to fix, not repeal prevailing wage

Posted by National Alliance for Fair Contracting on

Thursday, March 30, 2017
By Mark Bliss ~ Southeast Missourian

State Sen. Wayne Wallingford, R-Cape Girardeau, wants to fix rather than repeal Missouri’s prevailing wage law.

“I think most people realize this needs some fixes,” he said.

Gov. Eric Greitens has called for a repeal of the law, which requires contractors to pay a state-determined minimum wage for each construction trade on public-works projects.
…

Wallingford met earlier this year in Cape Girardeau with about 20 area contractors. Wallingford said union and nonunion contractors told him they don’t want lawmakers to repeal the prevailing-wage law.
…

Labor unions provide skilled training for their members and health insurance, according to Rick McGuire, business manager for Laborers Union Local 1140 in Cape Girardeau.
Tim Pekios, who operates nonunion Midwest Environmental Studies, a Cape Girardeau-based asbestos-abatement company, favors keeping the prevailing-wage law.

“It is not just a union thing,” he said Wednesday.

Pekios, who was one of the contractors who met with Wallingford in February, said the current law “allows all companies to get the best workers.”

Without such a law, low-wage companies with less-skilled workers could end up with public-works contracts, Pekios said.

(Read More)

BERGEN CONTRACTER CHARGED WITH LARCENY FOR ALLEGED WAGE FRAUD

Posted by National Alliance for Fair Contracting on

By Dylan Skriloff on August 4, 2016

Rockland County District Attorney Thomas P. Zugibe today announced the filing of criminal charges against Christopher Greco (DOB 07/07/65) of 260 East Crescent Avenue, Mahwah, New Jersey for allegedly defrauding nine employees out of more than $82,000 by failing to pay the mandatory prevailing wages on several public works projects for the County of Rockland.

Greco is charged with:

* Six count of Grand Larceny in the Third Degree, class “D” Felonies
* One count of Grand Larceny in the Fourth Degree, a class “E” Felony
* 48 counts of Offering a False Instrument for Filing in the First Degree, class “E” Felonies
* One count of Petit Larceny, a class “A” Misdemeanor

District Attorney Zugibe said, “Firms doing business with the County of Rockland are obligated to pay their workers legally prevailing wages, which include salary and supplemental benefits. Cases like this demonstrate that we are vigilant in uncovering such criminal conduct and that unscrupulous contractors will get caught and have to pay the consequences for cheating workers out of their rightful wages.”

(Read More)

Oregon Law to Affect Pay Stubs, Time and Pay Records, and Wage Theft

Posted by National Alliance for Fair Contracting on

6/16/2016
by Kelly Riggs

The State of Oregon has enacted a new law, SB 1587, designed to increase transparency with respect to employee pay, prevent wage theft, and expose wage and hour violations. Generally, the law will require employers to provide additional details on itemized pay stubs and allow employees to inspect and request copies of their time and pay records. The law also provides increased enforcement measures and prohibits wage theft by public works contractors and subcontractors. Employers must comply with the new requirements, summarized below, beginning January 1, 2017.

Itemized Pay Stubs

Under the new amendments to the current pay stub statute, ORS 652.610, employers will be required to provide much greater detail on itemized, written pay stubs, including:

  • the date of the payment;
  • the dates of work covered by the payment;
  • the employee’s name;
  • the name and business registry number or business identification number of the employer;
  • the address and telephone number of the employer;
  • the rate or rates of pay;
  • whether the employee is paid by the hour, shift, day, or week or on a salary, piece, or commission basis;
  • gross wages;
  • net wages;
  • the amount and purpose of each deduction made during the period of service that the payment covers;
  • allowances, if any, claimed as part of minimum wage;
  • unless paid on a salary basis and legally exempt from overtime pay, the regular hourly rate or rates of pay, the overtime rate or rates of pay, the number of regular hours worked and pay for those hours, and the number of overtime hours worked and pay for those hours; and
  • if paid on a piece rate, the applicable piece rate or rates of pay, the number of pieces completed at each rate, and the total pay for each rate.

Employers may provide itemized pay stubs to employees in electronic form, but only if (1) the employee expressly agrees to receive them in electronic form; and (2) the employee has the ability to print or store the statement at the time of receipt.

Oregon law already provides that itemized pay stub violations constitute a Class D criminal violation, potentially punishable by a fine of up to $250 for individuals or $500 for corporations. Beginning on January 1, 2017, violations of these new pay stub provisions will also constitute a Class D criminal violation.

(Read More)