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Austin City Council passes wage theft protection ordinance

Author: KVUE Staff
Published: December 2, 2022

The ordinance includes three elements that aim to protect workers and help them get full payment for the work that they do.

AUSTIN, Texas — On Thursday, the Austin City Council voted on a way to protect laborers.

The council unanimously passed an ordinance that it says will help prevent wage theft.

According to the Workers Defense Project, the ordinance will create a wage theft coordinator position to assist workers that come forward with reports of wage theft violations. The council said this will help make sure workers get full payment for the work that they do.

The ordinance will also create a publicly available database of employers that have a record of wage theft doing business with the City of Austin. It will also bar any employer identified in the database from entering into contracts with the City.

The Austin Monitor reports that the City does not have the authority to prosecute wage theft violators. That responsibility lies with the state and local governments.

Employers who are proven to have committed wage theft can be fined and even sentenced to jail time.

(See Article)

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US Department of Labor Recovers $178k in Back Wages for 27 Workers of Houston Employer Who Misclassified Them as Independent Contractors

Agency: Wage and Hour Division
Date: July 28, 2022
Release Number: 22-1438-DAL

M&M’s Welding & Fabricating failed to pay workers overtime

HOUSTON – An investigation by the U.S. Department of Labor has recovered $178,358 in overtime back wages for 27 employees of a Houston welding and fabrication company that misclassified them as independent contractors and denied them their full wages and benefits.

The department’s Wage and Hour Division found M&M’s Welding & Fabricating – operating as M&M’s Welding – misclassified the workers who specialize in the erection of structural steel buildings. As a result, the employer failed to pay the overtime premium for hours over 40 in a workweek and paid only straight time for all hours worked.

“M&M’s Welding & Fabricating exploited vulnerable workers by misclassifying and denying them the overtime pay they earned,” explained Wage and Hour Division District Director Robin Mallett in Houston. “Employers who do this harm workers and their families who depend on their earnings and benefits. They also gain an unfair advantage over their business competitors who abide by the law. The Wage and Hour Division will hold these employers accountable.”

The Wage and Hour Division is responsible for determining whether employees have been misclassified as independent contractors and have been denied critical benefits and labor standards protections. In fiscal year 2021, the division identified more than $36 million in back wages owed to about 21,000 construction industry workers. In its investigations, the division commonly finds violations related to employers failing to pay overtime when required, misclassifying workers as independent contractors, and not paying them for time spent on work-related travel, or pre- and post-shift work.

The Bureau of Labor Statistics projects construction industry employment to grow at a rate of 6 percent by 2030, with a gain of approximately 400,000 jobs. Employers who ensure their workers are paid their rightful wages and benefits will be best positioned to retain and recruit skilled workers.

Learn more about the Wage and Hour Division, including a search tool to use if you think you may be owed back wages collected by the division. The division protects workers regardless of immigration status and can communicate with workers in more than 200 languages.

See Article

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Council moves to put a stop to wage theft

FRIDAY, JANUARY 28, 2022
BY JO CLIFTON

Austin is taking a step toward joining El Paso and Houston in punishing employers that engage in wage theft, with a resolution City Council approved unanimously on Thursday. A dozen people signed up to tell Council members to approve the resolution, which was sponsored by Council Member Ann Kitchen.

The resolution directs City Manager Spencer Cronk to create a system for the city to receive complaints from workers about construction employers who fail to pay wages owed to employees, fail to maintain payroll records or improperly classify employees as independent contractors. Staff members are expected to come back to Council with an ordinance establishing criminal penalties and a civil complaint procedure relating to wage theft. …

District Attorney José Garza sent a letter to the mayor and Council urging them to approve the resolution. He noted that his office has launched an economic justice enforcement initiative, with some emphasis on deterring wage theft. However, he wrote, “As we have undertaken this initiative, it has become clear to us that there are not sufficient systems in place to support wage theft victims or deter these legal violations from recurring. We need additional partners in this work. I am hopeful that this resolution presents an opportunity for our office to deepen its collaboration with the city and strategize how we can strengthen avenues available for wage theft victims to seek justice.”

(Read More)

Officials, activists fight wage theft on the border (TX)

Mexican consulate and U.S. Labor Department seek to end workplace exploitation

by: Julian Resendiz

Posted:
Aug 23, 2019 / 03:01 PM CDT

EL PASO, Texas (Border Report) – The Mexican consulate and the U.S. Labor Department office in El Paso on Friday signed a cooperation agreement to fight wage theft and other labor violations committed against immigrants.

The consulate said it will begin a weeklong labor-rights education campaign on Monday and encourage Mexican citizens who experience workplace exploitation to file a complaint with the local Wage and Hour Division of the Labor Department.

“Everyone who works in the United States, regardless of immigration status, has rights in the workplace that are guaranteed by law,” said Mauricio Ibarra Ponce de Leon, Mexican consul general in El Paso. “We will support our community and ensure that their labor rights are being respected. This agreement allows us to send people who come to us to the appropriate (U.S.) authority.”

Jacobo Valenzuela, a representative of the Wage and Hour Division in El Paso, said his office receives some 600 labor-related complaints a year. Most complaints come from workers in the restaurant, construction and agricultural industries, he said.

Ibarra said wage-theft – which occurs when an employer short-changes an employee for hours worked, refuses to pay overtime already performed or withholds payment altogether – isn’t the only issue faced by immigrant workers on the border. The weeklong Spanish-language education campaign known as “Labor Rights Week” will also include information on filing workplace injury claims, sexual harassment and human-trafficking complaints, as well as workplace safety issues.

(Read More)

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USDOL Wage and Hour Division to Host Prevailing Wage Seminars

May 2019

 

Our 2019 seminars will be held in the following locations:
  • Austin, TX, June 18th – 20th: Register Here
  • Anchorage, AK, June 25th – 27th: Register Here
  • Sacramento, CA, July 23rd – 25th
  • Washington, DC, August 13th – 15th
  • Indianapolis, IN, August 27th – 29th
Please note these locations may change.
If you would like to receive email updates about our seminars, please sign up for our mailing list here. (In the category “Wage and Hour” select “WHD – Prevailing Wage Seminar Announcements”)
The Wage and Hour Division (WHD) Prevailing Wage Seminars (Prevailing Wage Seminars) are three-day compliance trainings designed for regional stakeholders (unions, private contractors, state agencies, federal agencies and workers). In these seminars, conference participants will learn about the following:
  • The Davis-Bacon Act and McNamara O’Hara Service Contract Act
  • Executive Order 13495 “Nondisplacement of Qualified Workers”
  • Executive Order 13658 “Establishing a Minimum Wage for Contractors”
  • The process of obtaining wage determinations and adding classifications
  • Compliance assistance and enforcement processes
  • The process for appealing wage rates, coverage, and compliance determinations
Prevailing Wage Seminars for 2018 were held in the following cities:
  • Jacksonville, FL – April 10-12th, 2018
  • San Diego, CA – May 22-24th, 2018
  • Kansas City, MO – June 12-14th, 2018
  • Hato Rey, Puerto Rico – August 27-28th, 2018
If you have any questions please email WHD-PWS@dol.gov
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Texas bill would create public database of wage thieves (TX)

Written by Ryan Johnston
MAY 3, 2019 | STATESCOOP

Under a new bill making its way through the Texas legislature, the state would create a publicly searchable database of companies and employers that commit wage theft – a serious problem in a state that only sees 50 percent of offenders pay back stolen wages.

The bill, introduced last November by Democratic state Rep. Mary Gonzalez, would require the state’s workforce commission to maintain the database of offenders. Wage theft can take different forms, such as employers skimping on overtime for hourly workers or paying below minimum wage, which has been $7.25 per hour in Texas since 2009.

The database that would be created under Gonzalez’s bill would publish the names of each manager, owner and business that purposely withheld wages from employees and never paid them back. Though the bill doesn’t punish offenders monetarily, it would give workers, activists and politicians the ability to identify consistent violators. Right now, that information is only available through a public records request, something potential employees are unlikely to make of their future employer, particularly if they’re undocumented.

But the bill would give offending employers time to pay owed wages before they are added to the database. Companies that are ordered by the state’s labor commission to pay back wages have 30 days to do so; if they don’t comply, the state has 180 days to notify them they’re going to be added to the database, during which they can dispute the offense. Once an employer is added to the database, though, the identifying information would be searchable for three years or until they’re convicted of having committed wage theft.

(Read More)

Building The American Dream (TX)

by Lorry Kikta
March 16, 2019

Let’s face it, since 2016; we have been in a period of massive political upheaval. Crazy incidents happen by the day if not the hour. Ordinances and laws that once existed to protect the more vulnerable amongst us have been rescinded. Immigrants are under attack. I don’t know if you recall your elementary school history class, but this country was built by immigrants, and if you want to get technical about it, a lot of these so-called “immigrants” were actually native to North America, which therefore make us Europeans the ones who should be worried, but I digress.

Building The American Dream synthesizes the hardships that immigrants go through to a smaller scale story. The construction workers of Texas, who are largely undocumented or DACA, face all sorts of trouble daily. A lot of the things I’m about to tell you were things I didn’t know before seeing Chelsea Hernandez’ film. If you’re like me, once you watch this film, you will be even more emboldened to do whatever you can to vote out the scourge of soulless corporate-owned politicians in our state and Federal governments.

At the beginning of Building The American Dream, 25-year-old Roendy Granillo died after working while ill at his construction job. He told his foreman that he wasn’t feeling well, but got brushed off. Roendy and the other workers were working in 110-degree Texas heat. When Roendy arrived at the hospital, his temperature was also 110 degrees, and all of his organs failed. Gustavo Granillo, Roendy’s father, says “Si mi hijo tuviera a alguien con ellos que cuidara a sus trabajadores, esto no le habría sucedido.” or “If my son had someone with them who cared for their workers, this wouldn’t have happened to him.”

Half of the construction workforce in Texas are undocumented workers. The powers-that-be want to keep it that way because undocumented workers are easy to exploit. We next meet Claudia and Alex Gionelli, two immigrants who work together as electricians. The two were contracted to do the electric work for an Aldi supermarket. The two of them started out getting paid the wage that was posted; then they started getting paid half that. Then, they weren’t getting paid at all. The contractor told him he would pay them all they were owed and told them to meet him on a specific date. When they arrived in hopes of receiving the payment for a job they had already completed, the contractor had called the police, accusing the two of stealing tools and supplies. Nothing happened, and the Gianelli’s were owed upwards of $11,000. I don’t know about you, but I would be BEYOND livid if something like this happened to me.

The Texas Workforce Commission is taking steps to help prevent future wage theft and also to get payments for people who were stiffed by their greedy employers. Meanwhile, in lieu of what happened to Roendy, the Workers Defense Project is lobbying the city council of Dallas to enforce a paid rest break for construction workers. Ten minutes for every four hours worked. This is not that big of a deal if you think about it, but in Texas, things are very different than other places. Two lovely city councilmen who I would love to give a piece of my mind said the following words in response to a request for this rule.

Councilman Callahan says “I appreciate all the passion that went behind this, but again it’s just another piece of paper, a poster, another requirement and all for a “feel-good,” mind you. ‘Hey man, we got that done! Check! Let’s come up with a new work rule next year, won’t that be fun?’ And you think you gotta boon here now, Mayor, we could really have a boon if we just streamlined that, but quit telling business “No.” Quit telling them “no.” Let the Federal Government be the arbiter when it comes to rules and regulations.” In other words, pass the buck because we don’t want to scare off the people who donate to our campaigns? Yeah, cool, buddy.

(Read More)

Houston’s Attempt To Curb Wage Theft (TX)

Whatever came from Houston’s Wage Theft Ordinance? We take a look.

ALLISON LEE | POSTED ON
JULY 18, 2017, 7:00 AM (LAST UPDATED: JULY 18, 2017, 10:22 AM)

It’s called, “wage theft.” And it’s a problem here in Houston, that the city tried to address. More on how that worked out in a minute.

But first, just what constitutes wage theft?

It takes many forms. Not paying workers overtime they are entitled to, working off-the-clock, minimum wage violations, incorrectly categorizing employees as independent contractors, illegal deductions in pay, and not paying workers at all are all common examples of wage theft.

Stealing workers’ wages is an issue that even compelled President Obama to implement an executive order back in 2014 which, in part, discouraged businesses from committing wage theft, by not allowing them to receive federal contracts. That was repealed by President Trump back in March.

Tom Padgett is a lawyer in Houston, who says he represents lots of wage theft cases.
“The problem is that employers hold all the cards. And employees are afraid. They are afraid of retaliation…. I mean, we’ve had employees who have asserted their rights, and then the employers fire them, and they lose their house. Or they can’t afford their health insurance anymore, and their baby gets sick. So there’s a lot of terrible stories out there,” Padgett said.

The Fair Labor Standards Act (commonly known as FLSA) is a federal statute, put in place to ensure proper payment for workers. But Padgett’s firm says federal and state agencies don’t really have the man power to truly enforce that.

“There’s no specific Texas wage and hour law that would protect people. We have to go to federal court or we have to get a municipality, or a local ordinance, like Houston,” Padgett said. “But I haven’t seen any impact from the Houston ordinance, or any change at all.”

Padgett is referring to the Houston Wage Theft Ordinance, which was passed in 2013. It was put in place to deter businesses from stealing worker’s wages, by banning violators from working with the city. The ordinance even effectively bans businesses from operating in Houston, by way of not being able to renew permits and licenses.

(Read More)

Study: Construction workers in southern US lack employment benefits

Kim Slowey
May 11, 2017

 

Dive Brief:

  • A study has found that construction workers across the southern U.S. receive little to no employment benefits and have relatively low pay, according to the Houston Chronicle.
  • The Workers Defense Project report found that 40% of construction workers in Houston had no health insurance, retirement savings, paid vacations or sick leave. More than 30% were not offered breaks during the day and reported that their employer did not provide drinking water on the job.
  • Only 5% of the 1,435 workers interviewed in six Southern states said workers’ compensation covered the cost of their work injuries, and 57% said they earned less than $15 an hour.

Dive Insight:

The results of this study reinforce a complicated issue plaguing the industry. On one hand, contractors across the country are facing the consequences of skilled-labor shortages and say they’re pulling out all the stops – including raising pay – in an effort to recruit workers. However, this report reveals that, at least in the South, many companies aren’t making the necessary changes in compensation and workplace culture to be an attractive option for new workers.

(Read More)

(Full PDF of Report)

State fines Texas-based construction company $767K for misclassifying workers

Sep 20, 2016, 7:29am HST
Duane Shimogawa

The state Department of Labor and Industrial Relations has fined Texas-based R&R Construction Services $767,095 for the misclassification of its workers as independent contractors that are part of the Maile Sky Court hotel-condominium redevelopment project in Waikiki.

The state said Monday that R&R has 20 days to appeal the citations.

“Law-abiding contractors who pay their fair share face unfair competition, and workers suffer when deprived of their rights and benefits,” Linda Chu Takayama, director of DLIR, said in a statement. “The visitor industry and a pleasant visitor experience is important to Hawaii, but Hawaii’s working people and law-abiding contractors need to benefit fairly.”

R&R allegedly misclassified 65 construction workers as independent contractors and, by doing so, it avoided requirements to provide unemployment, workers compensation, temporary disability and prepaid health care insurances, according to the state.

(Read More)