Berkeley Makes History With Wage Theft Ordinance

BY JOHNNY MAGDALENO
AUGUST 16, 2016

Last year, at the start of spring, 21 construction workers were hired by a local contractor to hang drywall for a 79-unit apartment complex in downtown Berkeley, California. The workers spent five months on the project, but when they finally wrapped it up, they still hadn’t received a dime from their employer.

They filed complaints with their local trade unions, which were able to pass the message up to the Labor Enforcement Task Force and Joint Enforcement Strike Force, two coalitions of state and municipal agencies that have appraised $4.2 million worth of unpaid wages in California since 2012. Their investigation led California Labor Commissioner Julie Su to place a lien on the contractor for $60,000, the total amount the workers were owed, three months after they left the job site.

For Todd Stenhouse, a spokesperson for the wage advocacy nonprofit Smart Cities Prevail, the state’s response marks a turn for the best in what might have been a tragic finish for those workers. But successes like this represent a drop in the bucket when it comes to the hunt for unscrupulous contractors.

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City of Berkeley Enacts First of Its Kind Wage Theft Prevention Ordinance

By Valerie Gotten – Jul 20, 2016

BERKELEY, Calif. /California Newswire/ – Last night, the City of Berkeley approved a first-of-its-kind local ordinance aimed at preventing wage theft on local construction projects, Smart Cities Prevail announced today.

Authored by Councilmember Laurie Capitelli, co-sponsored by a majority of the Council and supported by construction industry trade associations and workers’ rights groups, the measure requires that developers and builders certify that all contractors performing work on large projects have complied with state wage and hour laws as a condition of winning a certificate of occupancy from the city.

“Enforcing wage laws is especially difficult in the construction industry, because unscrupulous contractors who cheat workers in order to win bids on large projects find ways of disappearing after the work is done,” said Smart Cities Prevail Policy Director Scott Littlehale. “By expanding transparency and accountability BEFORE a project is complete, Berkeley has taken an important step towards preventing wage theft and leveling the playing field for honest construction businesses competing for this work.”

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State Prevailing Wage Laws Save or Create 400,000 Jobs in America

FIRST OF ITS KIND NATIONAL STUDY EXAMINES ECONOMIC, SOCIAL, AND FISCAL IMPACTS OF STATE PREVAILING WAGE LAWS

Posted by Frank Manzo IV
February 9, 2016

CONTACT: Todd Stenhouse, (916) 397-1131 or toddstenhouse@gmail.com

Chicago, IL – As policy debates rage in states from Michigan and New Hampshire to New Mexico and West Virginia, researchers from the Illinois Economic Policy Institute, Colorado State University-Pueblo, and Smart Cities Prevail have just completed the first ever national study on the economic, social, and project cost impacts of state prevailing wage laws.

Prevailing wage laws govern the wage rates paid to construction workers on government-funded public works projects.

The report, entitled “The Economic, Fiscal, and Social Impacts of State Prevailing Wage Laws: Choosing Between the High Road and the Low Road in the Construction Industry,” utilizes industry standard IMPLAN modeling software and industry comparisons between states with and without prevailing wage laws to assess the impact of these policies on a variety of economic and social factors: including job creation, wages, worksite productivity, rates of in-state contracting, impacts on taxpayers, reliance on government assistance programs, and effects on communities of color and veterans.

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(Report Fact Sheet)

(Full Copy of Report)