Multnomah County takes on wage theft (OR)

Apr 16, 2019 | Workers Rights
By Don McIntosh

A proposed pilot program could make Multnomah County a trailblazer in fighting wage theft in construction. To make the case for it, a panel of union members and advocates addressed the County Commission April 9 about the many ways unscrupulous contractors cheat workers out of wages – and why the complaint-driven process at Oregon’s understaffed Bureau of Labor and Industries isn’t enough to stop it. [Watch their presentation here.]

Wage theft is the underpayment or nonpayment of wages or benefits that workers are legally entitled to receive. It’s not uncommon in construction – even on taxpayer-funded public construction projects that employ compliance staff to guard against it. Those staff need help, several union representatives told commissioners.

And they’d get that help under the proposal put forward by Multnomah County Chair Deborah Kafoury’s office. As detailed in a budget memo, the proposed Labor Compliance Pilot Program would allow knowledgeable members of the public, such as union representatives, to volunteer to help enforce prevailing wage and wage and hour laws on County construction projects. The volunteers would have access to the certified payroll records that contractors submit to the County – and be allowed to visit worksites to interview workers.

Modeled on a program at Los Angeles Unified School District, the pilot project would assign a half-time-equivalent staff person to train and support 10 volunteers who would visit the County’s construction projects.

Thirteen ways to cheat your employees out of wages

Wage theft is far too common in construction. Here are some ways crooked contractors do it.

  • Don’t pay them. Hire a day laborer for a day’s work, then stiff them when the work is done.
  • Don’t pay for breaks. Tell them the company’s in too big a hurry for them to take meal and rest breaks.
  • Don’t pay them overtime. You can’t afford time-and-a-half.
  • Tell them they’re independent contractors. That gets you out of paying employer Social Security tax, unemployment insurance, workers’ comp, and maybe even minimum wage.
  • Don’t pay them for time in transit. Tell them to pick up the company truck and equipment and drive 50 miles to the work site, but pay them only for the hours they work on site.
  • Call them apprentices. Pay your journeymen the apprentice wage.
  • Work them off-the-clock. Ask them to do a little prep work before they clock in, or a little cleanup after they clock out.
  • Ask for kickbacks. You gave them the prevailing wage job, didn’t you? Have them pay some of those higher wages back to you, or to the foreman, or labor broker.
  • Pay piece rate. So what if it ends up less than minimum wage?
  • Deduct things from their wages. Why should you pay for the tools or supplies they need to do the job?
  • Misclassify them. On a prevailing wage job, pay them at the laborer rate while they do carpenter or painter work.
  • Leave off benefits. Prevailing wage includes money for benefits, but who can afford to offer them?
  • Lie about the number of hours they work. Pay the prevailing wage. Just tell the project superintendent that your employees worked half as many hours as they really did.

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‘Put The Exploiters In Jail’: Wage Theft Bill Cracks Down On Employers

By Shaun Boyd
April 2, 2019 at 6:40 pm

The Colorado Fiscal Institute says more than 500,000 Colorado workers are victims of wage theft each year, losing an estimated $750 million. And right now, there’s little prosecutors can do about it.

Under current state law, wage theft is a misdemeanor, no matter if it’s $100 or $100,000. Representatives Jonathan Singer and Meg Froelich plan to change that.

“When a hard day’s work is put in, an honest day’s pay is deserved,” said Singer.

He and Froelich have introduced a bill that would align wage theft with other thefts. If it’s over $2,000, it would be a felony.

“Wage theft is perpetrated against the most vulnerable workers,” said Froelich.

It is especially common in the construction and food service industries. Jim Gleason, a carpenter, says he was a victim.

“We were getting paid every week until about the 4th or 5th week and we were informed that there wasn’t enough money to make payroll so if we didn’t mind waiting a week, we’d pay for two weeks the next week,” he said. “Well, the next week came and there was no check. It’s time we put the exploiters in jail and got the penalties that they deserve and give the wages to the people who deserve them.”

The Colorado District Attorney’s Council agrees.

“Why is it that someone should face a greater penalty for stealing your cellphone then for having your wages stolen?” asked Boulder County District Attorney Michael Dougherty. “It is the exact same offense and should be treated the same under law and until we do so we’re going to allow immigrants and poor people in this state to be victimized.”

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