Worcester to guard against wage theft in future tax deals for private development

Posted by National Alliance for Fair Contracting on

By Nick Kotsopoulos
Telegram & Gazette Staff
Updated Dec 9, 2018 at 8:05 PM

WORCESTER – The city will include provisions against wage theft in future tax increment financing agreements for private development projects, City Manager Edward M. Augustus Jr. has informed the City Council.

The action is in response to a call by several councilors to strengthen the city’s current wage theft ordinance, where appropriate, to include stipulations for building permits.

While it has been determined that the city cannot legally impose such conditions on building permits, it can put them in tax deals for private projects.

“The goal is to secure compliance and eliminate the use of wage theft tactics by entities doing business with the city,” Mr. Augustus wrote in a report that goes before the City Council Tuesday night.

In 2016, the City Council approved a wage-theft ordinance that prohibits the city from awarding contracts to companies that have been found guilty of not complying with federal and state wage laws, including failing to pay their employees, and failing to pay prevailing wage, minimum wage and overtime.

Other types of wage theft include denial of legal benefits such as industrial accident and health insurance, improper classification of employees and violations involving payment of taxes, unemployment compensation, Social Security and income tax withholding.

Under the Worcester ordinance, successful bidders for city contracts have to provide a certification of compliance regarding payment of wages to employees.

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Portland tax breaks should require wage, employment standards, mayor says

Posted by National Alliance for Fair Contracting on

Mayor Ethan Strimling is again proposing new requirements for companies that seek to reduce property taxes as an incentive for new development.

Posted April 14
BY RANDY BILLINGS – STAFF WRITER

Portland Mayor Ethan Strimling is renewing efforts to require companies that receive city tax breaks to diversify their construction crews and pay a livable wage, among other things.

The proposal would only apply to projects that receive Tax Increment Financing from the city, but not all city-funded projects, such as school renovations.

“If we’re going to give tax breaks like this, we want to make sure there’s a broad community benefit,” Strimling said. “This is the starting point for the conversation. My goal is to use taxpayer money well.”

…

The proposal also requires crews to be paid the wages and fringe benefits established in either the state prevailing wage law, or the city’s minimum wage law, whichever is greater.
Prevailing wages are set on an annual basis by the state Department of Labor on a county-by-county basis for state construction projects exceeding $50,000.

In 2017, prevailing wages, including fringe benefits, were around $20 an hour, ranging from $13.63 an hour for a fence-setter to $91.28 for an elevator installer, according to the DOL.

(Read More)