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USDOL Wage and Hour Division to Host Prevailing Wage Seminars

Posted by National Alliance for Fair Contracting on
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

U.S. DEPARTMENT OF LABOR RECOVERS $2,772,977 FOR 6,450 DISASTER RECOVERY WORKERS

Posted by National Alliance for Fair Contracting on

Agency- Wage and Hour Division
Date – May 8, 2019
Release Number – 19-0721-NEW

PHILADELPHIA, PA – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), WSP USA Services Inc. – based in Winchester, Virginia, and doing business as WSP USA Inspection Services, Inc. – has paid $2,772,977 in back wages to 6,450 employees for violating the McNamara-O’Hara Service Contract Act (SCA) and the Fair Labor Standards Act (FLSA).

Under contract with the Federal Emergency Management Agency (FEMA), WSP USA Services Inc. performed disaster-related housing inspections in U.S. territories and states – including Puerto Rico, the U.S. Virgin Islands, Texas, Florida, Georgia, and California – following hurricanes and other natural disasters.

Investigations by WHD’s Caribbean and New York City District Offices found the contracting agency’s failure to amend the contract at renewal to include the most recent wage determination led WSP USA Services Inc. to underpay SCA-required prevailing wages and fringe benefits to employees. The employer also failed to post the wage determination, which lists the required pay rates for each category of work performed, and the SCA poster, as required. The FLSA violations stemmed in part from WSP USA’s failure to include bonuses in employees’ regular pay rates when determining their overtime rates. This exclusion resulted in the employer paying overtime at rates lower than those required by law.

“Contractors that bid on government contracts must exercise due diligence and be aware of – and pay – the required rates and benefits to their employees,” said Wage and Hour Division Northeast Deputy Regional Administrator Maria Rosado. “All federal contracting agencies advertising for bids and awarding contracts are required to include the McNamara-O’Hara Service Contract Act labor standards and a current wage determination stating the minimum wages to be paid various classes of service employees. Our enforcement of these requirements help to level the playing field for all contractors doing business with the government.”

(Read More)

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Dept. of Labor forces contractor to pay New Orleans laborers $180,000 back pay, follows class action lawsuit (LA)

Posted by National Alliance for Fair Contracting on

BY ANTHONY MCAULEY
MAY 21, 2019 – 2:06 PM

The U.S. Department of Labor said Tuesday it had forced a Florida-based contractor, Gomez Drywall Construction Inc., to pay 108 Louisiana-based workers nearly $180,000 in back pay for breaking federal rules on overtime compensation.

The Department of Labor said the action followed an investigation into claims Gomez misclassified workers as independent contractors and subsequently failed to pay them overtime when they worked more than 40 hours in a workweek, a violation of the Fair Labor Standards Act.

(Read More)

Worker claims employer had him arrested based on his reporting of safety concerns (MA)

Posted by National Alliance for Fair Contracting on

AUTHOR – Kim Slowey
PUBLISHED – March 11, 2019


Dive Brief:

  • The U.S. Department of Labor (DOL) filed suit against a Boston-based contractor, alleging that the company took retaliatory measures against one of its employees – facilitating his U.S. Immigration and Customs Enforcement (ICE) arrest – after he reported a workplace injury, an event that kicked off an OSHA investigation. 
  • According to the lawsuit, José Martin Paz Flores (Paz) was working as a drywall taper for Tara Construction when he fell from a ladder and broke his leg. Based on Paz’s report to a foreman and a referral from the local fire department that day, OSHA began an investigation into safety conditions at the jobsite.
  • The DOL alleges that Tara CEO Pedro Pirez subsequently contacted law enforcement with concerns about Paz’s identity and facilitated Paz’s arrest outside of Tara’s offices, which resulted in his detention by ICE for days. 

Dive Insight:

The DOL is seeking back pay and damages from Tara on behalf of Paz, as well as other relief such as a neutral letter of recommendation for Paz, who has since been cleared to work, to present to prospective future employers. Reporting an injury and causing an OSHA investigation to be initiated are protected acts under federal whistleblower laws, which blanket all workers, regardless of immigration status. 

These protections, such as regulations prohibiting employer retaliation, are important because fear of adverse action can prevent employees from reporting illegal and/or unsafe activities. In Paz’s case, the retaliation came in the form of an arrest, but employers could also lash out at workers who report malfeasance of some sort through employment termination, demotion, denial of overtime or promotions, intimidation, harassment and reduction of pay or hours.

(Read More)

DOL Names New Acting Wage and Hour Administrator

Posted by National Alliance for Fair Contracting on

The National Law Review
Tuesday, February 5, 2019

On February 1, 2019, the U.S. Department of Labor publicly designated Keith Sonderling as Acting Administrator of the Wage and Hour Division (“WHD”).  He joined WHD in September 2017 as a Senior Policy Advisor, receiving a promotion to Deputy Administrator last month.  Before joining the Department, he was a shareholder in the Gunster law firm in West Palm Beach, Florida, where he represented businesses in labor and employment matters.

…

Sonderling steps into the role vacated last month by Bryan Jarrett, who led WHD since October 2017.  President Trump nominated Cheryl Stanton to serve as Administrator of WHD in September 2017, and she continues to wait for a confirmation vote in the Senate.

WHD enforces the minimum wage, overtime, and child labor provisions of the FLSA, as well as the Family & Medical Leave Act and several prevailing wage statutes applicable to federal government contracts, among other laws.

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Department of Labor v. Department of Revenue Services: Employee, Independent Contractor, or Both (CT)

Posted by National Alliance for Fair Contracting on

February 7, 2019

For years now, the Connecticut Department of Revenue Services (DRS), the Connecticut Department of Labor (DOL) and the Internal Revenue Service (IRS) have been targeting Connecticut employers for worker misclassification audits. When a misclassification is discovered, these government entities can share information about employers who have misclassified employees as independent contractors. Thus, when one of these government entities finds a misclassification during an audit, audits from the other governmental entities are likely to arise.

When a misclassification is discovered, the employer will be subjected to various federal and state taxes, penalties and interest charges. A misclassification occurs when an employee is incorrectly treated as an independent contractor. As a result, the worker does not have income taxes or payroll taxes withheld from his/her pay and is not issued a Form W-2. Businesses aren’t the only employers targeted for such audits. Charitable organizations, public school systems, cities, towns, and even State departments are subject to audit.

The IRS and the DRS have historically used a 20-factor test to determine if a worker is an employee or independent contractor. The factors are used to determine if the service recipient has the right to control the service provider, not only as to the result to be accomplished, but also as to the details and means by which that result is accomplished. If such control is found, the worker is deemed to be an employee. The 20 factors are used to determine if the service recipient has behavior, financial, or relationship control of the worker. We refer to this as the “IRS Control Test”. The DRS uses the IRS Control Test.However, the DOL, uses a stricter three-part test for determining if a worker is an independent contractor referred to as the “ABC Test.”

…

This results in the absurd situation in which a worker is treated as an independent contractor for income and payroll tax purposes and as an employee for DOL purposes, such as unemployment insurance, workers compensation, fringe benefits and labor and employment laws.

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Gary homeless project contractors cited for pay violations (IL)

Posted by National Alliance for Fair Contracting on

By Carole Carlson
February 18, 2019

The U.S. Department of Labor ordered four contractors, who built the $9.5 million Village of Hope federal housing project in Gary, to pay workers $255,474 for failing to pay prevailing wages and fringe benefits. 
The labor department announced the ruling last week.

The wage law violations impacted 53 former and current employees, according to a release from the labor department.

“Government contractors receive detailed agreements that include prevailing wage and fringe benefits rates, required to be paid by all contractors working on a federally funded project.

Prime contractors must assure that their subcontractors adhere to these rules as well,” said Wage and Hour Division District Director Patricia Lewis, in Indianapolis.The project’s prime contractor TWG Construction LLC, based in Indianapolis – has paid $82,477 to 20 employees.

TWG Construction LLC sub-contracted with a temporary staffing company, which failed to pay cleaning service crews in accordance with federal law.
The labor department’s investigation found temporary employees were misclassified and not paid the required prevailing wage rates.

Also, 8 Aces Construction Inc., Lansing, Ill., has paid $69,022 to 19 employees. Investigators found the company failed to pay finishers, painters and carpenters prevailing wage rate. The employer also failed to pay required fringe benefits to employees.

Due to the repeat and “willful nature” of these violations, the labor department said 8 Aces Construction Inc. and owner Jose “Tony” Ochoa have been declared ineligible to bid on federal contracts for a period of three years. A 2017 investigation found 8 Aces owed back wages totaling $99,313 to 95 employees.

(Read More)

Wage Gaps and Outcomes in Apprenticeship Programs

Posted by National Alliance for Fair Contracting on

The Effects of Gender, Race, and Region

By Daniella Zessoules and Olugbenga Ajilore
Posted on December 12, 2018, 12:01 am

Policymakers frequently approach the question of developing the workforce to meet the needs of the 21st century. Despite today’s historically low unemployment rates, wages for typical workers have barely budged for decades. While productivity has increased, gains have largely trickled to the richest Americans, exasperating persisting income inequality and painting an ominous picture of middle-class living standards. Furthermore, gaps in both wealth and income by race and gender have caused disproportionate labor market penalties for certain groups. Wage gaps and growing income inequality along racial lines have persisted despite higher educational attainment. For example, earning a bachelor’s degree or higher has not proven to reduce either the black-white or the Latinx-white wage gap. Meanwhile, employers are spending less on worker training than they used to. And too often, the training that they do provide is firm-specific, meaning that those skills do not translate well to other firms.

Registered Apprenticeship programs, which have bipartisan support, aim to address this issue by connecting Americans to decent-paying jobs as electricians, carpenters, and dental assistants, among others. The program, which the U.S. Department of Labor (DOL) administers through the Workforce Innovation and Opportunity Act, aims to help businesses develop highly skilled employees through hands-on customized training for a variety of occupations. The DOL asserts that the average hourly wage for a journeyperson who completes an apprenticeship is $23.94, equivalent to an annual salary of $49,795.

Investments in the workforce of tomorrow are necessary both to ensure pathways to relevant economic opportunities as well as to bridge economic disparities along racial and gender lines-including racial wealth and pay gaps-that continue to plague families across the country. Unfortunately, data on Registered Apprenticeship programs identify prominent economic disparities among women and people of color-many of whom face low enrollment rates within such programs and are concentrated in lower-paying occupations.

(Read More)

US Department of Labor Wage and Hour Division Prevailing Wage Seminars

Posted by National Alliance for Fair Contracting on

DESCRIPTION

The Wage and Hour Division (WHD) Prevailing Wage Seminars are three-day compliance trainings designed for regional stakeholders (private contractors, state agencies, unions, federal agencies and workers).

The first two days of the seminar will consist of either courses on the Davis-Bacon Act or the Service Contract Act. The third day will feature courses concerning the Executive Orders and subject matter related to both the Davis-Bacon Act and the Service Contract Act as well as presentations from other agencies such as OSHA, Office of Federal Contract Compliance Programs (OFCCP), Housing and Urban Development (HUD), National Labor Relations Board (NLRB)

We have selected the following locations for our 2018 seminars:

Venues will be announced at a later date. 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”)

For any questions please contact WHD-PWS@dol.gov 

(Visit DOL’s WHD Website)

A.G. Schneiderman Leads 11 Attorneys General Opposing Trump Dept. of Labor Program to Offer Amnesty to Labor Law Violators

Posted by National Alliance for Fair Contracting on

PAID Program Encourages Violators to Require Employees to Waive State Law Protections – Like Higher Minimum Wage Levels – in Exchange for the Payment of Overdue Wages

Schneiderman Also Files Freedom of Information Act Request Seeking Information on Purposes of Program and Impacts on State Labor Enforcement Efforts

Schneiderman: We Won’t Hesitate to Prosecute Wage Theft – Even if the Federal Government Won’t

Posted on April 11, 2018 in Business News

NEW YORK – New York Attorney General Eric T. Schneiderman – leading a coalition of eleven Attorneys General – sent a letter to Labor Secretary Alexander Acosta raising serious concerns about the U.S. Department of Labor’s Payroll Audit Independent Determination (PAID) Program, a pilot program that allows certain employers who violate labor laws to avoid prosecution and penalties in exchange for simply paying the back wages their employees were already owed under federal law.

The letter makes clear that the PAID Program encourages employers to require their employees to waive important state law protections, like higher minimum wage levels and longer time periods to sue, in exchange for the employer’s payment of overdue wages. Even though such waivers may not be enforceable against state law enforcement entities, employees may be misled into believing they have no legal recourse to fully vindicate their workplace rights.

“As we’ve said from the start, the PAID Program is nothing more than a Get Out of Jail Free card for predatory employers. Our coalition of Attorneys General won’t stand by as the Trump administration grants amnesty to those who commit wage theft and take advantage of their employees,” said Attorney General Schneiderman. “I want to be clear to those doing business in New York: we will continue to prosecute labor violations to the fullest extent of the law, regardless of whether employers choose to participate in the PAID Program – because all workers deserve a fair day’s pay for a fair day’s work.”

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