Executive order: Minimum wage for workers in gov’t-contracted construction is now $15 (Puerto Rico)

By Eva Lloréns Vélez on July 30, 2018

SAN JUAN – Puerto Rico Gov. Ricardo Rosselló signed an executive order to increase the minimum wage for Puerto Rico construction industry employees to $15 an hour for government contracting. The order also requires locally produced cement for government construction projects.

In addition, the decree requires labor agreements for projects financed by the government to establish security conditions and professional training “for the protection of workers,” according to a release issued by the governor’s office, La Fortaleza, following his press conference there on the matter.

Local contractors complain that they are being discriminated against by the government in its project procurements in favor of stateside companies, which Rosselló acknowledged has happened historically, but noted differences when comparing local and mainland resource after a disaster.

“Sometimes there is not enough labor; sometimes they are huge projects that some of the local contractors do not qualify for and sometimes it’s remuneration. So what have we decided to do? We have decided to start looking for solutions,” he said at a press conference Monday.

The measure could apply to 36,000 to 44,000 construction workers, of which 21,000 are salaried employees who work for construction companies. “That is the potential universe of people that can be impacted as long as that construction company is bidding for construction work with the government,” Labor Secretary Carlos Saavedra said.

“One of the fundamental elements in the recovery of Puerto Rico is the construction industry, which is vital to be prepared for weather events and other emergencies that may affect us in the future,” the governor is quoted as saying in the release, adding that “now that Puerto Rico begins the road to reconstruction, it is indispensable that the local construction workforce be stronger than ever. We need more Puerto Rican construction workers, better trained, and better paid.”

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U.S. Department of Labor Recovers $14.3 Million for Hurricane Recovery Workers (Puerto Rico)

By Source Staff – September 25, 2018

In the year since hurricanes Irma and Maria struck Puerto Rico and the U.S. Virgin Islands, the U.S. Department of Labor’s Wage and Hour Division (WHD) has recovered $14,337,657 in unpaid wages for 7,761 employees engaged in recovery work in these territories. WHD has also undertaken significant outreach activities to educate employers and employees about compliance with federal wage laws as part of its ongoing hurricane response efforts.

Following the hurricanes, WHD began a broad-based education and enforcement initiative providing information to employers and workers via social media, and by conducting outreach. Investigations focused on compliance during short-term emergency response operations funded through the Federal Emergency Management Agency (FEMA) to ensure employers were aware of their responsibilities and employees were paid.

The investigations examined coverage under an employer’s compliance with the Service Contract Act (SCA), Contract Work Hours and Safety Standards Act (CWHSSA), Davis Bacon and Related Acts (DBRA), and the Fair Labor Standards Act (FLSA).

WHD investigators found violations that included non-payment of wages, minimum wage and overtime violations resulting from employees being misclassified as independent contractors, and failure to pay required health and welfare benefits under the SCA.

WHD has conducted more than 60 outreach events; signed memorandums of understanding (MOUs) with Puerto Rico’s Department of Labor and its Office of the Comptroller to better coordinate enforcement and outreach efforts; and hosted a prevailing wage seminar to educate contractors, government agencies, and other stakeholders about compliance with applicable laws.

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