Virtual seminar on Davis-Bacon compliance for projects receiving funding under the Bipartisan Infrastructure Law

Posted by National Alliance for Fair Contracting on February 16, 2022

The U.S. Department of Labor’s Wage and Hour Division will offer compliance seminars for contracting agencies, contractors, unions, workers, and other stakeholders to provide information on Davis-Bacon compliance requirements for projects receiving funding under the Bipartisan Infrastructure Law.

The Bipartisan Infrastructure Law, signed by the President on November 15, 2021, creates an historic investment in our nation’s aging infrastructure. Most of the construction projects funded or assisted through the Bipartisan Infrastructure Law will be subject to Davis-Bacon prevailing wage labor standards, and construction workers on these projects must be paid at least the locally prevailing wage and fringe benefits required for the work they perform. This ensures that responsible contractors can compete for federally-funded or assisted construction contracts, and that the workers who will build our communities, ensure our safety, and improve our infrastructure receive fair wages. This seminar provides an overview of how federal funding agencies, funding recipients, and contractors can meet their Davis-Bacon obligations on projects receiving BIL funding subject to the Davis-Bacon labor standards.

The training is the latest in the Wage and Hour Division’s ongoing efforts to increase awareness and improve compliance with federal prevailing wage requirements among employers performing work on federally funded construction or services contracts. The webinar will include an overview of the Davis-Bacon compliance requirements followed by a Q&A session. Participants will be able to submit questions in advance or during the webinar. The interactive webinar will be offered on the alternative dates of February 28 and March 1, 2022, and participants may register for either date.

While seminar attendance is free, registration is required. Participants may register at Eventbrite. Additional information, including the links to video trainings and virtual Q&A session dates, will be provided to registrants.

For more information on Davis-Bacon compliance with Bilateral Infrastructure Law, the Davis-Bacon Act, the Service Contract Act, and other federal wage laws, please call the Department’s toll-free helpline at 1-866-4US-WAGE (487-9243) or visit dol.gov/agencies/whd.

Concrete contractor backpay order approaches $1 million

Posted by National Alliance for Fair Contracting on February 11, 2022

February 11, 2022
Concrete News

A judgment in the U.S. District Court for the Eastern District of New York orders Macedo Construction Inc., Macedo Contracting Services Inc., Odecam Concrete Supply Corp. and Manuel Macedo. to pay 99 workers a total of $987,591 in back wages and liquidated damages, plus $53,249 in civil penalties to the Department of Labor (DOL).

The action settles charges of willful Fair Labor Standards Act (FSLA) violations identified in a DOL Wage and Hour Division investigation. It found Manuel Macedo and his Bellport, N.Y. companies failed to combine the hours laborers worked at the three commonly owned businesses, and paid them with multiple checks to evade overtime requirements. Each separate check showed the employees logged less than 40 hours per workweek when they actually worked a combined total of up to 48 hours per week. The companies also neglected to pay employees for time spent traveling from work yards to jobsites, and retain accurate records of the employees’ work hours and pay rates.

“The scheme by Macedo Construction, Macedo Contracting Services, Odecam Concrete Supply Corp. and Manuel Macedo deprived their employees of nearly $491,000 in hard-earned wages over three years,” says WHD District Director David An. “In addition to the back wages, the employer must pay these workers an equal amount in liquidated damages, plus interest. We encourage other employers to consider this investigation’s outcome, review their own pay practices and contact the Wage and Hour Division to avoid similar violations. The consequences of noncompliance with federal labor laws can be serious and expensive.”

(Read More)

ATTORNEYS GENERAL SUE OVER DOL JOINT-EMPLOYER RULE

Posted by National Alliance for Fair Contracting on March 16, 2020

February 27, 2020

Attorneys general from 17 states and the District of Columbia filed a lawsuit to stop the US Department of Labor’s new joint-employer rule. The suit was announced Wednesday.

“The new rule, which would result in lower wages and additional wage theft targeting lower- and middle-income workers, demonstrates that the Trump Administration does not care about the hardworking individuals that help this country run,” New York Attorney General Letitia James said in a statement.

The Department of Labor announced the final rule last month, and it’s set to take effect March 16. It includes a four-factor test for determining joint-employer status where an employee performs work for one employer and that work benefits another. It’s separate from a joint-employer final rule discussed this week by the National Labor Relations Board.

In the lawsuit announced yesterday, the attorneys general argued companies have increasingly outsourced employment of workers and that third-party employers are less stable and subject to less scrutiny. As a result, they are more likely to violate wage and hour laws, according to the attorneys general.

“Here in New Jersey, we have a strong stake in protecting the rights of workers and guaranteeing them redress for wage-and-hour violations. That is why it’s important for us to be part of today’s lawsuit,” New Jersey Attorney General Gurbir Grewal said.
The joint-employer standard determines when more than one employer is responsible under the Fair Labor Standards Act because both exert sufficient influence over a worker’s employment.

“Under the new administration rule, corporations can only be categorized as ‘joint employers’ – and therefore only be held liable for the actions of their subcontractors, franchisees or third-party managers – if it can be shown they have ‘direct control’ over the other companies’ policies,” according to the New Jersey Attorney General’s Office.

(See Article)

Punching In: Slowing Down the DOL Apprenticeship Train

Posted by National Alliance for Fair Contracting on February 11, 2020

Bloomberg Law
Nov. 12, 2019

Ben Penn: With National Apprenticeship Week upon us, Team Trump surely would like the public to believe the Labor Department has cleared up an appropriations error surrounding the administration’s principal job training initiative.

The DOL recently admitted to misusing about $1.1 million on the Industry-Recognized Apprenticeship Program that still hasn’t been finalized, dipping into a pot of money designated for a separate apprenticeship program that’s been around for decades. The snafu took place under former Labor Secretary Alexander Acosta, based on orders from an ex-policy adviser. The department says it already has taken multiple steps to correct the issue. Besides, the $1.1 million in question is a drop in the bucket relative to the DOL’s overall budget.

Nothing left to see here, right?

Were it only that simple.

Not everyone’s certain the DOL has resolved the spending mistake. Lingering questions could slow the White House’s effort to put together a final rule to establish the new, industry-led job training model.

We already know the department’s inspector general looking into the potential budget violation and the Democrat-controlled House Education and Labor Committee is continuing its oversight requests.

Now we can add North America’s Building Trades Unions to the list of groups demanding answers. The construction union umbrella organization is one of the few labor groups that have found a way to work on certain issues with the Trump White House. Lately, however, it’s using the IRAP proposal to ramp up attacks on this administration.

Mike Monroe, chief of staff of the building trades group, called news of the misspent money “frustrating.” The department’s Employment and Training Administration vowed during the Acosta regime that it wouldn’t use the new IRAP system to undermine the longstanding registered apprenticeship system, a crucial job training source for the building unions. Monroe wants to be sure the department is weighing all of the public feedback it received on a proposed rule to establish the IRAP system.

The union led a public comment blitz slamming the industry-friendly IRAP proposed rule, with thousands of blue-collar union members opposing the rule.

“If there are ethical lapses in the misuse of funds then we’re rightfully concerned there may well be ethical lapses in the review and consideration of all the public comments-which is to say they’ve already made their minds up here,” Monroe said. “Our membership is watching this issue really closely” and “we are highly concerned that this undefined process that is now being funded inappropriately, it seems, may undermine their ability to safely earn a living in the construction crafts.”

Even if only $1.1 million was misspent, the ongoing scrutiny offers a convenient vehicle for NABTU, Democratic lawmakers, and others on a mission to stop the White House apprenticeship push in its tracks.

(Read More)

U.S. Department of Labor Finds Three Chicago Area Companies Violated Child Labor Regulations After Minors Suffer Serious Injuries (IL)

Posted by National Alliance for Fair Contracting on February 11, 2020

11/12/19
WorkersCompensation.com

Chicago, IL – After investigations by the U.S. Department of Labor’s Wage and Hour Division (WHD), it was determined that three Chicago-area companies – Maria V. Contracting, Prate Roofing & Installations LLC, and Red Line Management – violated the Child Labor Provisions of the Fair Labor Standards Act (FLSA). WHD has also assessed a total of $127,262 in civil money penalties against the companies under the Child Labor Enhanced Penalty Program (CLEPP) because three minors suffered substantial impairment during their unlawful employment.

WHD opened the investigations after receiving referrals from the Department’s Occupational Safety and Health Administration (OSHA) regarding injuries suffered by minors employed in positions that violate “Hazardous Occupation Orders,” which prohibit specific jobs for workers under 18.

“The Child Labor Standards specifically prohibit minors from working with equipment and in jobs that expose them to hazards. In each of these cases, minor employees suffered serious injuries because they were assigned tasks – such as working on roofs, and operating forklifts or other dangerous machinery – that violate employment rules for minors,” said Wage and Hour Division District Director Tom Gauza in Chicago, Illinois. “The U.S. Department of Labor’s Wage and Hour Division is committed to ensuring minors and their parents are aware of the child labor rules and that employers comply. We encourage employment opportunities for minors, but they must be safe.”

WHD assessed civil money penalties of $63,814 to Maria V. Contracting after investigators found a minor employed by the company suffered electrical shock and serious burns when he fell 25 feet from an excavator bucket while cutting power lines. He also sustained fractures to his right femur and patella bone. Investigators found the company violated Child Labor standards by allowing a minor to drive a company pick-up, work on roofs, conduct demolition tasks and work around power-driven hoisting apparatus.

WHD assessed Prate Roofing & Installations LLC with $16,742 in civil money penalties after the Wauconda, Illinois, employer allowed a 16-year-old worker to engage in roofing activities. Investigators found that, while working on a roof, he fell approximately 25 feet through a skylight onto a concrete floor. OSHA investigators determined the minor was not attached to safety cord or wearing a helmet. He suffered a burst fracture in his spine and a fracture dislocation of the ankle requiring emergency surgeries and several months of rehabilitation.

WHD assessed Red Line Management with $46,706 in civil money penalties after a 17-year-old employee suffered multiple injuries when he fell more than 6 feet while riding on top of a forklift to steady the load. The fall resulted in a chest contusion, fractured left arm, torn left rotator cuff and torn ligaments in both knees that required multiple surgeries and months of rehabilitation. Investigators found the minor was operating forklifts, a prohibited occupation for minors, about 75 percent of his time on the job.

The CLEPP provides for civil money assessments of $11,000 to $50,000 for each employee who was the subject of a violation of the child labor regulations and suffered permanent loss, permanent paralysis, or substantial impairment because of their employment.

(Read More)

TWO MASSACHUSETTS FIRMS FALL SHORT ON $2.4 MILLION OWED OVER IC MISCLASSIFICATION (MA)

Posted by National Alliance for Fair Contracting on November 7, 2019

Staffing Industry Analysts
September 18, 2019

Two Massachusetts construction companies and their officers have fallen short on payments required under a 2016 consent judgement over Fair Labor Standards Act violations that included misclassifying workers as independent contractors, the US Department of Labor reported. Now, labor officials are asking the court to hold them in civil contempt.

The consent judgment required them to pay $2.4 million in back wages and liquidated damages to 478 employees. However, they have paid only $477,900 and currently owe nearly $1.8 million plus interest to affected employees, according to the department.

“These employers conceded that they unlawfully kept the wages of 478 employees and committed themselves to paying those employees under a consent judgment and order of the court. In violation of that order, the employers have unlawfully kept $1,179,842.55 of their employees’ hard-earned wages,” said Maia Fisher, regional solicitor of labor for New England.

“After numerous attempts to resolve the employers’ continued failure to comply with the court order, the US Department of Labor now asks the court to hold the defendants in contempt and impose all sanctions required, including imprisonment if necessary, to ensure compliance with the court’s original order,” Fisher said.

Named in the original 2016 consent judgement and order are Force Corp., AB Construction Group Inc. and employers Juliana Fernandes and Anderson dos Santos.

(See Article)

USDOL Wage and Hour Division to Host Prevailing Wage Seminars

Posted by National Alliance for Fair Contracting on August 16, 2019

August 2019

Our 2019 seminar will be held in the following location:

Indianapolis, IN, August 27th – 29th

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

If you have any questions please email WHD-PWS@dol.gov

(Read More)

USDOL Wage & Hour Dept. Release New Website for Wage Determinations -Starting Friday, June 14, 2019

Posted by National Alliance for Fair Contracting on July 10, 2019

6-12-19

The U.S. Department of Labor is excited to announce … WDOL.gov will be transitioning to https://beta.SAM.gov, which will become the new website for wage determination data.

Features of the new beta.SAM.gov website include:

Search-based structure: Users may search for a variety of information including specific Davis-Bacon Act and McNamara-O’Hara Service Contract Act wage determinations.

Learning Center with tutorial videos, tools, and other information to familiarize users with the new site.
- Ability to filter and search for content in the Learning Center. Users will find links to Federal Acquisition Regulation (FAR) and Code of Federal Regulations citations for specific subjects via a Cross Index page for Contract Labor Standards.
- The site features more FAR Supplements and other acquisition regulations than WDOL.gov.
- A Transition Quick Start Guide will be available soon.

Create an account: By creating a beta.SAM.gov account, users may access certain features of the system only available to account holders. For example, users will have the option to:
- Save previous searches.
- Start or modify a Collective Bargaining Agreement.
- “Follow” specific wage determinations and receive email alerts when changes or modifications are published.
- Users will determine what to follow and the frequency of email alerts.
- Timeline and history of changes to wage determinations.

Support for the wage determinations in beta.SAM.gov will continue to be provided by the Federal Service Desk.

Employers can find compliance assistance resources from the U.S. Department of Labor’s Wage and Hour Division at www.dol.gov/WHD/foremployers.htm. Additional compliance assistance resources and answers to common questions regarding federal labor laws can be found at www.Employer.gov.

(Visit the SAM.gov Website)