Demonstrations against Sandoval continue
Posted by NERCC on April 19, 2012 at 09:38 AM

Carpenters in Connecticut protested at the New London Plaza Hotel against Sandoval Construction of North Carolina. The area standards picket line highlighted the company’s practice of paying wages and benefits that are lower than the industry standard in the New London area. The company was also issued a Stop Work Order by the Connecticut Department of Labor for not having proper workers’ compensation coverage.

TheDay.com posted a story about the event. 

Resident raises concerns, reaches out
Posted by NERCC on April 18, 2012 at 11:55 AM

A Stamford Connecticut resident wrote in to the Stamford Patch to voice her concerns about the Harbor Point project being developed by Carl Kuehner's Building and Land Technology (BLT) in a letter posted earlier this week. Carol Ann McClean writes that Dallas-based subcontractor Baker Concrete Construction has brought in a crew of workers from Texas, when there is a pool of local residents looking for work.

“Baker Concrete Construction does not employ skilled, licensed, local Connecticut parents from our state, who live locally and have been out of work for years. Instead, our streets are lined with Texas license plates, and I know these vehicles are not going home to Texas every night...”

She also speaks about workers’ compensation and unemployment violations and details concerns about various violations she sees in reference to the Harbor Point Infrastructure Act.

She writes, “For a corporation like BLT, Harbor Point, who gets these enormous tax breaks for the special tax district, (that would be a whole other lengthy explanation on the amazing deal they are getting) you would think that they would be concerned with following the rules, ordinances, statues etc on every issue as they are required, I have come to find it is the complete opposite.”

The Harbor Point site has been the subject of repeated demonstrations by union carpenters calling attention to the presence of subcontractors on site who do not pay area standard wages and benefits for carpenters on all of their projects.

You can read McClean’s letter in its entirety here. 

Carpenters demonstrate against Sandoval
Posted by NERCC on April 12, 2012 at 12:17 PM

Carpenters in Connecticut have been protesting at the new London Plaza Hotel (formerly the Radisson Hotel) against Sandoval Construction of North Carolina. The company does not meet area standards for wages and benefits. It was also issued a Stop Work Order by the Connecticut Department of Labor last week for not having proper workers' compensation coverage.

The New London Patch posted a story, photos and video of the event.

 

NERCC calls for harsher penalties for those not buying workers' comp
Posted by NERCC on April 12, 2012 at 08:34 AM

The New England Regional Council of Carpenters and other industry groups are calling on the Massachusetts legislature to make it a felony for employers to fail to purchase workers compensation insurance for their employees. Senate Bill 915, sponsored by Senator Katherine Clark (D-Melrose) and Majority Whip Ronald Mariano (D-Quincy) also has the backing of Attorney General Martha Coakley.

Operating without workers' compesnation insurance is currently a misdemeanor, punishable by upt oa year in prison or a find of up to $1,500. The new law would make the felongy punishapble by up to five years in state prison, two-and-a-half years in jail or a fine of up to $10,000.

NERCC Political Director Steve Joyce said that although union carpenters are always covered by workers' compensation insurance, they are still hurt by those who cheat.

"In an industry where work most often goes to whoever submits the lowest price, any contractor who does not purchase workers' compensation coverage has a competitive advantage right from the start over contractors who follow the law and have coverage," he said. "That negatively impacts any carpenter that works for a legitmate contractor. We're not looking to hurt all employers, we value the role they play in creating jobs. We just want everyone to comply with the law when they do it."

Even the Associated Industries of Massachusetts (AIM), a group that lobbies for businesses, support the bill. In a story by the State House News Service, John Regan, AIM's Executive Vice President described the current situation as unfair to too many.

"Their faliure to have that insurance in place means that if workers working for them get injured, the rest of the employer commnity pays the bill" and that making failure to have coverage a felony "reflects the seriousness of the issue, and conveys how important it is that coverage be in place."

According to the SHNS story, the Massachusetts Department of Industrial Accidents has reported more than 1,000 cses costing the worekrs compensation fund $26 million in the last five years becuase their employer didn't have worers' compensation coverage. In recent years the department has routinely issued Stop Work Orders against more than 3,000 employer found to be operating without workers' compensation coverage.

Stamford developer still in hot water
Posted by NERCC on February 01, 2012 at 10:38 AM

Despite trying to pack the hall with its own supporters, a Stamford developer still faced a tough room last night in a Zoning Board meeting to discuss its future plans and ongoing zoning violations (also here) at their Harbor Point project. Building and Land Technology (BLT) has come under fire for its choice of subcontractors, labor violations on its projects and contributing to industry-wide issues targeted by enforcement agencies.

The seriousness of the issues at Harbor Point is compounded by the seeming lack of interest and/or ability of Stamford Mayor Michael Pavia.

Carpenters to support unpaid workers in Durham
Posted by NERCC on February 01, 2012 at 10:24 AM

Union carpenters will join with church, student and community groups to hold a news conference today at 3pm at the Community Church of Durham (NH) at 17 Main Street to release information about serious violations of state and federal law--including non-payment of wages--at the "Cottages of Durham." The "Cottages of Durham" is a new student housing development for students of the University of New Hampshire. It is being developed by Capstone Development/The Cottages of Durham.

Please read this and consider visiting the Cottages of Durham Facebook page and politely ask them to do right by these workers.

Construction workers at the Cottages of Durham describe multiple and flagrant violations of state and federal labor law.

These workers say that they worked long hours for many weeks without pay. When they complained about nonpayment of their wages, they were terminated and evicted from their housing.

Union carpenters stand in solidarity with these exploited workers and demand that Cottages of Durham/Capstone Development promptly pay these workers what they are owed in wages and overtime.

Area Standards Demonstration: Baystate/Marriott
Posted by NERCC on February 01, 2012 at 08:18 AM

Carpenters in Boston will be holding an area standards demonstration on Saturday, February 4 from 11am-1pm against Baystate Services, Inc. The demonstration will take place at the Marriott Copley Place on Huntington Avenue.

More information about Baystate and Marriott Copley Place.

Area Standards Demonstration: Continental Contractors/Radisson
Posted by NERCC on January 31, 2012 at 12:40 PM

Carpenters in Boston will be holding an area standards demonstration on Thursday, February 1 from 11a-1p against Continental Construction. The company, which has been hired for renovation work at the Radisson Hotel does not meet area standards for carpenters' wages and benefits on all of its projects. The demonstration will take place at the Boston Radisson, located at 200 Stuart Street.

Area Standards Demonstration: Baystate/Marriott
Posted by NERCC on January 31, 2012 at 10:07 AM

Carpenters in Boston will be holding an area standards demonstration on Tuesday, January 31 from 3-5pm against Baystate Services, Inc. The demonstration will take place at the Marriott Copley Place on Huntington Avenue.

More information about Baystate and Marriott Copley Place.

Area Standards demo: Baker Concrete
Posted by NERCC on January 30, 2012 at 12:15 PM

Connecticut Carpenters will be holding an area standards demonstration against BAKER CONCRETE on Thursday, February 2nd from 10:00 am to 12:00 pm at Commons Park on Crosby Street across from 201 Park Place in Stamford.

More on Baker Concrete demonstrations.
 

Area Standards demo--Allstate Interiors
Posted by NERCC on January 30, 2012 at 12:09 PM

Carpenters in Connecticut will be holding and Area Standards demonstration against ALLSTATE INTERIORS on Tuesday, January 31st, 10:00 am to 12:00 pm at Storrs Road Route 195 (Corner of Dog Lane) Storrs Center, Mansfield.

Carpenters demonstrating against Baker Concrete
Posted by NERCC on January 20, 2012 at 01:12 PM

Union Carpenters in southwestern Connecticut held an area standards demonstration yesterday at Commons Park on Crosby Street in Stamford to bring attention the business practices of Baker Concrete. The Ohio-based company does not meet area standards for wages and benefits for carpenters on all of their projects.

Baker is currently performing concrete work as part of the massive development at Harbor Point. The owner and development of the project is Building and Land Technology (BLT). Baker Concrete is the latest in a string of questionable subcontractors used on BLT developments. Subcontractors on BLT projects have been the subject of at least eight "Stop Work Orders" for misclassifying workers and other violations. One subcontractor, Heritage Drywall, was ordered to pay more than $100,000 in owed wages and penalties on a BLT project.

Ted Duarte, a Representative of the New England Regional Council of Carpenters said trades workers and community members will be demonstrating because Baker Concrete's attempts to undermine area standards is not only bad for the area construction industry but the regional economy.

“Most workers on this project are from out of state and that’s obviously not a good thing for area residents," he said. "It's taking jobs from local people, taking money out of the local economy and undermining standards for local workers in the future."

The demonstration was covered by local media, including the Stamford Advocate and video of Duarte commenting at the site of the demonstration were posted on YouTube (see below)

State investigating use of shelter workers at Boston Marriott
Posted by NERCC on January 20, 2012 at 01:11 PM

A prominent article in the Boston Globe today revealed that state investigators are looking into the use and treatment of out-of-state shelter workers in the renovation of rooms at the Boston Copley Marriott. Union carpenters, painters and other union members have been demonstrating twice a week for months at the site against Baystate Interiors, Inc. of Woburn for undermining area standard for carpenters' wages and benefits.

Baystate is renovating several floors of rooms at the pricey downtown hotel owned by Host Hotels and using a California-based company named Installations Plus. Installations is using workers from a missionary shelter in Philadelphia to do work at the Marriott and allegedly violating wage and hour laws to do it.

The workers come from a drug and alcohol rehabilitation shelter in Philadelphia run by Victory Outreach International, an evangelical group based in the San Diego area.

“Our concern is that Host Hotels is trying to take advantage of the recession by bringing in out-of-state laborers to do work that has traditionally been done by local union tradespeople,’’ said Mark Erlich, president of the New England Regional Council of Carpenters.

The investigation is not the first trouble enforcement authorities have found on the site. The subcontractors working on the project--including Installations Plus--have been issued "Stop Work Orders" and paid fines for not having proper workers' compensation insurance.

Click here to view a NERCC-produced video about the demonstrations at the Boston Copley Marriott.

Carpenters demonstrating against Baker Concrete
Posted by NERCC on January 19, 2012 at 11:09 AM

Union Carpenters in southwestern Connecticut were demonstrating today at Commons Park on Crosby Street in Stamford to bring attention the business practices of Baker Concrete. The Ohio-based company does not meet area standards for wages and benefits for carpenters on all of their projects.

Baker is currently performing concrete work as part of the massive development at Harbor Point. The owner and development of the project is Building and Land Technology (BLT). Baker Concrete is the latest in a string of questionable subcontractors used on BLT developments. Subcontractors on BLT projects have been the subject of at least eight "Stop Work Orders" for misclassifying workers and other violations. One subcontractor, Heritage Drywall, was ordered to pay more than $100,000 in owed wages and penalties on a BLT project.

Ted Duarte, a Representative of the New England Regional Council of Carpenters said trades workers and community members will be demonstrating because Baker Concrete's attempts to undermine area standards is not only bad for the area construction industry but the regional economy.
“Most workers on this project are from out of state and that’s obviously not a good thing for area residents," he said. "It's taking jobs from local people, taking money out of the local economy and undermining standards for local workers in the future."
 

Pulte subs ordered to pay more than $500k
Posted by NERCC on January 18, 2012 at 02:43 PM

Multiple enforcement agencies in Massachusetts today announced that five subcontractors employed by Pulte on sites in Eastern Massachusetts have been ordered to pay workers more than $400,000 in owed wages and make payments totaling $141,000 to cover unpaid taxes.

The order is the result of investigations that began after workers complained to Representatives of the New England Regional Council of Carpenters that they had been unpaid for extended periods of time. Workers went on strike at several Pulte locations and filed complaints with the state.

"The investigation fined five separate subcontractors, but the real culprit is Pulte Homes, a multi-billion dollar national homebuilder," said Mark Erlich, Executive Secretary-Treasurer of the New England Regional Council of Carpenters. "Those subs are interchangeable and were just doing Pulte's bidding. Cheating is Pulte's business model and, unfortunately, that approach is far too common in the residential construction industry."

Subcontractors that were part of the order include:
--AM Construction Services and its President, Adimar Demoura, age 32 of Framingham, allegedly failed to pay four workers a total of $15,331.50 for framing work done on private residential projects in Braintree and Plymouth. They were also fined $22,500 in penalties.
--Five Stars Construction and its President, Alexandre Miranda, age 40 of Trumbull, Connecticut, allegedly failed to pay two workers a total of $30,700 for framing work done on a private condominium project in Natick. They were also fined $30,000 in penalties.
--Nunes Brothers Construction and its President, Tiago Aguiar M. Nunes, age 28 of Brooklyn, New York, allegedly failed to pay 23 workers a total of $99,086.75 for framing work done on private condominium and single-family homes projects in Braintree, Plymouth, Natick, and Northbridge. They were also fined $112,500 in penalties.
--Seven Seas Group and its President, Jackson Croscup, age 55 of Fall River, allegedly failed to pay five workers a total of $10,333 for framing work done on a private condominium project in Natick. They were also fined $20,075 in penalties.
--Two Brothers Construction and its President, Wellington DeLima Borges, age 41 of East Natick, allegedly failed to pay six workers a total of $34,751.50 for framing work done on a private home development project in Plymouth. They were also fined $34,500 in penalties.

Investigating the complaints were Attorney General Martha Coakley’s Office (AGO), the Executive Office of Labor and Workforce Development (EOLWD), and the Joint Enforcement Task Force on the Underground Economy and Employee Misclassification (JTF). The JTF was established by Governor Deval Patrick through Executive Order #499 in March 2008 to coordinate multiple state agencies’ efforts to stamp out fraudulent employment activities by enforcing the state’s labor, licensing, and tax laws.

“All workers in the Commonwealth deserve to be paid for the wages they have earned, including their overtime,” said Attorney General Coakley. “We will continue to work together and take appropriate action to stop these unlawful business practices, level the playing field for companies and protect workers.”

“The Commonwealth is committed to insuring that all businesses carry both workers’ compensation and unemployment insurance coverage,” said Secretary of Labor and Workforce Development Joanne F. Goldstein. “We will not tolerate employers or developers who proceed without this coverage, which puts employees at risk and employers who play by the rules at a competitive disadvantage. The Joint Task Force will continue to take all necessary action to protect legitimate employers, employees and the taxpayers of the Commonwealth.”

MA Attorney General bid protest decision
Posted by NERCC on December 29, 2011 at 10:01 AM

Union carpenters turned out for a selectman’s meeting in Ware, MA in opposition of the town’s decision to move forward with the hiring of PDS Engineering & Construction, Inc.. The Town of Ware accepted the bid of PDS for the general contract for its Fire Department, despite the omission of information in bid documents.

The New England Carpenters Labor Management Program filed the bid protest arguing that PDS made material omissions of four lawsuits from its Update Statement. The Update Statement covers matters between the contractor's last DCAM application for certification and the date of the bid. Bidders are instructed that they "must report all requested information not previously reported on that [most recent] application for Prime/General Certificate of Eligibility."

The AG’s office found that that PDS should have disclosed an ongoing personal injury lawsuit on its Update Statement. Normally such a decision would have required automatic rejection of PDS. However, based on the Supreme Judicial Court's decision in Fordyce v. Hanover, 457 Mass. 248 (2010), this finding the AG’s office determined that the Town of Ware has the discretion to accept the bid of PDS, despite the omission of information in their original bid.

From masslive.com:

Ware- A Springfield carpenters’ union opposes the town’s decision to award the general contract for a new fire station to PDS Engineering & Construction Inc., the lowest bidder, because the Connecticut company did not reveal in bid documents that it was involved in seven lawsuits.

The New England Regional Council of Carpenters Local 108 filed a bid protest with the state Attorney General’s office, which issued a report saying PDS notified the town of three ongoing suits but failed to mention four others, including one from a woman who claims she was injured by an improperly installed precast wheel stop.

Read the full story here. 

 

Troubling state of affairs in Stamford
Posted by NERCC on December 16, 2011 at 10:29 AM

John Cunningham, Business Manager for Carpenters Local 210, has written an opinion piece, published in the Stamford Advocate today highlighting some very dangerous trends in the area's construction industry. A young trades worker was killed when he was blown off a roof in a very preventable accident. He and his brothers were owed more than $6,000 in wages, according to reports. Stop Work Orders issued against contractors who don't carry workers' compensation insurance for their crews or who misclassify workers to avoid payroll taxes and their share of other "safety net" programs are becoming more and more common. Major projects being done by major developers are involved.

The last few months should serve as something of a wake-up call for everyone from workers to elected officials and everyone in between. It is especially necessary that general contractors, construction managers and developers begin to pay more attention to what is actually happening on their sites.

Union carpenters have also begun to make more noise in the streets, demonstrating and asking people to pay a more attention to these very serious issues. The industry needs basic standards for how work is done and how workers are treated. Contractors who only focus on getting jobs, investors interested in only profits and elected officials interested in only ribbon cuttings and job creation statistics can not be relied on to follow through. Union carpenters intend to lead the fight.

Carpenters continue mass demonstrations at Marriott Copley
Posted by NERCC on December 16, 2011 at 10:07 AM

December 16, 2011
FOR IMMEDIATE RELEASE
CONTACT: Mark Erlich

Carpenters continue mass demonstrations at Marriott Copley
Members of the New England Regional Council of Carpenters, Painters District Council #35 and other Boston Building Trades unions will be demonstrating at the Marriott Copley Place this Saturday, December 17 from 11am-1pm to call attention to substandard conditions for construction workers renovating 1100 hotel rooms. Demonstrations featuring as many as 200 members have been held two to three times a week for the last month and will continue indefinitely.
 

Host Hotels, the owner of the downtown hotel, hired Baystate Services, Inc as a general contractor. Baystate and its subcontractors pay substandard wages, and minimal or no benefits. In addition, many of the subcontractors illegally misclassify their employees as "independent contractors", a violation of state and federal tax and insurance laws. Three subcontractors on the site, RB Wallcovering, of Jacksonville Beach, Florida, Jayson Connor, a Marshfield, MA flooring contractor and Installation Plus, a Corona, CA contractor were issued Stop Work Orders (attached) by the Massachusetts Department of Industrial Accidents within the last five weeks for failure to properly cover employees with workers’ compensation insurance.
 

“Host Hotels is part of an unfortunate trend to drive standards down and jeopardize middle-class careers in construction," says Mark Erlich, Executive Secretary-Treasurer of the New England Regional Council of Carpenters. "Host is taking advantage of the recession to bring in low-waged out-of-state workers and hiring contractors that participate in the growing underground economy.”
 

“If guests used the same logic as Host Hotels—that price was the only issue for making a decision—would any of them stay at the Copley Marriott?" asks Jeffrey Sullivan, Business Manager of Painters District Council 35. "Guests pay up to $400 a night while these trades workers make as little as $12 an hour. With room occupancy in Boston back to pre-recession levels, Host has no excuse for these kinds of choices."
 

Video of past demonstrations can be viewed in the nercc.org video gallery under the “Workers Rights” heading. 

Union demonstrations at Boston Copley Marriott to continue
Posted by NERCC on December 13, 2011 at 02:44 PM

Union carpenters joined by union painters, electricians and members of UNITE/HERE (hotel workers) will continue to demonstrate against the undermining of area standards at the Boston Copley Marriott hotel. Bay State Interiors has been hired to renovate rooms and does not pay carpenters area standard wages and benefits on all of its projects. More than 200 workers turned out at a demonstration last week and another 100 attended a demonstration Tuesday. Demonstrations will be scheduled regularly each week, including this Wednesday from 3:00-5 p.m. and Saturday December 17, 2011, 11:00am-1:00pm.

IRS, US DOL to cooperate with state enforcement on misclassification
Posted by NERCC on September 20, 2011 at 12:01 PM

The United States Department of Labor and the Internal Revenue Service yesterday signed Memorandums of Understanding with seven states to increase compliance with laws governing how workers should be classified and paid. Massachusetts and Connecticut were among the states participating. The efforts will focus on both education of employees and increased efficiency of enforcement through information-sharing between state and federal agencies, according to a DOL press release.

Wage theft and the misclassification of workers at so-called independent contractors has been a growing problem in the construction industry and others. Employers use the tactic to avoid proper payment of payroll taxes, unemployment and workers' compensation insurance. The practice is particularly troubling in the construction industry, where companies that play by the rules are put at a significant advantage during competitive bidding.

The effort expands the model used in numerous states, including five of the six New England states, where multiple agencies work together on a task force to ensure violations of some laws aren't allowed to pass because they do not fall under the jurisdiction of the agency that happens to be investigating.

News coverage
Associated Press
Bloomberg

Resources on the issue of misclassification and wage theft:
Wage theft stories on NERCCBlog.
1099 and Misclassification stories on NERCCBlog.
National comprehensive resource page.

NERCC demonstrating against Advantage Construction in Hyannis
Posted by NERCC on July 14, 2011 at 12:00 AM

Cape Cod Times reports on Carpenter demonstration
Posted by NERCC on July 14, 2011 at 12:00 AM

The Cape Cod Times posted this article about carpenters demonstrating yesterday, including quotes from NERCC Representative Brian Richardson. The target of the demonstration was Advantage Construction, which is undermining the standard for carpenters' wages and benefits while building at Balise Ford in Hyannis. The project is one of several where carpenters have demonstrated in the last few weeks about Advantage Construction.

"We know what they're getting paid and it's significantly less than area standard," said Brian Richardson, a protest participant and the director of organizing for the New England Regional Council of Carpenters.
Related Stories

In Wednesday's demonstration, about 40 carpenters chanted, waved signs and blew whistles in front of the new Balise Ford location on High School Road, where the dealership is being renovated. Last Friday, about 50 protesters marched outside the recently constructed showroom at Hyannis Toyota on Route 132.

Balise Ford manager Mark Caliri declined to comment on the protest, saying that the issue is between the union and the construction company.

The target of the demonstrations has been Quincy-based Advantage Construction, the construction management company overseeing the work at the two dealerships. Advantage Construction pays workers $20 to $25 per hour, Richardson said — far less than the $50 that he said is the standard hourly rate on Cape Cod.

Read the full story here.

More on Mayo
Posted by NERCC on June 02, 2011 at 12:00 AM

The Mayo Group and owner John McGrail came under public scrutiny again in downtown Worcester when a group of nonunion carpenters set up a strike line outside the Bancroft Commons property at the end of last week and continued it earlier this week. Today, the carpenters demonstrated in front of Mayo's corporate headquarters in Dorchester.

The carpenters are owed $55,000 for work they did on the project for Ramirez Drywall. The subcontractor has not been paid for the work and so he has been unable to pay the workers.

Ramirez and the carpenters contacted NERCC Organizer Manny Gines for assistance, after seeing that the union had helped other workers receive owed wages recently.

Bancroft Commons is a major residential renovation project covering several blocks downtown, bordering Worcester Common and the Worcester Telegram and Gazette. The project has been the site of consistent problems.

Late in 2007, NERCC Organizers talked to nonunion carpenters on the site who were having issues with the way they were being paid. One carpenter told a reporter from the Worcester Telegram that "sometimes" taxes were taken out of his check. The story was given prominent coverage in the paper and Mayo began its strategy of portraying the union as the boogeyman to explain away issues on the job.

Several months later Clive McFarlane, a columnist for the Worcester Telegram, wrote a second piece in the paper, detailing allegations by more nonunion immigrant carpenters employed on the Bancroft Commons project. This time the story got worse. Three of them told McFarlane that they had not been paid wages owed for work they did for Mayo. They were each owed more than $1,700 and had filed complaints with the Attorney General's Office.

Things got worse in January of 2009, when the Mayo Group were indicted by a Worcester Grand Jury for improper handling and disposal of asbestos removed from the property. Investigators alleged that the company:
--failed to conduct a survey to determine whether asbestos was in the building
--threw demolition debris, which turned out to include asbestos, out of second story windows into an open dumpster
--scheduled asbestos to be disposed of at a landfill not approved for asbestos
--did not notify state authorities, as required by law, of asbestos demolition.
--ignored a stop work order from the state and continued to remove asbestos from areas of the building where residents were living.

McGrail and one of the Mayo Group Companies, JMRealty eventually pleaded guilty to several of the counts related to improper handling of asbestos, evasion of unemployment insurance, failure to provide pay records, and failure to withhold income tax. McGrail narrowly escaped jail time. He and JMRealty were fined $100,000 each and sentenced to three years of probation.

After the strike line was established last week in Worcester, representatives of the Mayo Group spoke to Ramirez and the carpenters, but did not pay them. When contacted by the Telegram and Worcester Magazine, Mayo suddenly claimed there were quality issues with the work produced and the issue was the result of the Carpenters union trying to exploit the situation.

Bad press for AvalonBay
Posted by NERCC on May 24, 2011 at 12:00 AM

The Somerville Journal reported on AvalonBay's troubles in Woburn, where the Attorney General forced them to settle claims of housing discrimination.

The story also discusses the death of Oscar Pintado, a carpenter who was killed during construction of the project when he fell 48 feet through a hole that was improperly covered with unmarked particle board.

The Woburn site was one of several AvalonBay sites that were the subject of an Attorney General's Office investigation into misclassification of workers and wage and hour complaints by workers employed by AvalonBay subcontractors.

More carpenters strike for owed wages
Posted by NERCC on May 24, 2011 at 12:00 AM

A group of nonunion carpenters went on strike at two projects yesterday, seeking close to $100,000 in wages owed to them. The carpenters approached the union for help after their employer--New Haven Drywall--refused to pay them and bounced checks for their drywall and taping work.

Carpenters first demonstrated yesterday morning outside of Cohasset AvalonBay, a project that has been slowed for years by permitting and economic reasons. Construction finally began last year and the company hopes it will open early this summer, according to media reports.

After securing more than $17,000 owed to 11 of the carpenters on the Cohasset site, the group traveled to Norwood, where they planned to demonstrate seeking close to $80,000 15 workers claim to be owed there. New Haven Drywall was also the subcontractor there, hired by developer Chestnut Hill Realty, which is acting as the general contractor, developer and owner.

The strike continued there today.


.

MetroWest Daily News reports on Pulte, unpaid carpenters
Posted by NERCC on May 20, 2011 at 12:00 AM

The MetroWest Daily News today ran a front page, above the fold piece about carpenters that have gone unpaid for work they did on multiple Pulte sites in Massachusetts. The issue was the topic of a story in the Quincy Patriot Ledger last Saturday.

A group of more than 30 nonunion carpenters have filed wage complaint forms with the Massachusetts Attorney General's office seeking to recover months of wages they are owed for work they did on Pulte sites in Braintree, Natick, Northbridge and Plymouth. They may also be owed wages for work done on a Pulte site in Wakefield, Rhode Island.

Despite protests at the Braintree and Natick sites and last week's column in the Patriot Ledger, the company continues to claim in today's story that they are "unaware of any complaints filed with any state or federal agencies."

As one of the largest home-builders in the United States, with developments in 28 states, it's hard to believe Pulte doesn't know what's happening on their own sites. The company acts as a general contractor on many of their projects, directly hiring subcontractors.

A company spin-meister told the MetroWest Daily News that "PulteGroup considers a number of factors when selecting subcontractors to build its homes. Each project is unique and contracts are awarded on merit to the companies that are the best fit for the job."

Unfortunately, workers going unpaid on Pulte jobs does not appear to be a "unique" condition. It looks more like something the company has decided is the "best fit" for their current projects in New England.

Carpenters in New England aren't the only ones unhappy with Pulte. Last week eight people were arrested during a peaceful demonstration at Pulte's annual shareholders meeting in Detroit. They were there to question the job creation and economic benefit to the community of $900 million in tax benefits Pulte earned last year when a tax law was changed largely benefiting a small number of large, national home builders.

Here in New England, Pulte is the latest in a series of contractors whose projects have become the subject of protests and wage claims as a result of nonunion workers not being paid and going on strike. The following is a video chronicling some of NERCCs activity regarding the issue.

Carpenters unpaid for months on Pulte jobs
Posted by NERCC on May 14, 2011 at 12:00 AM

NERCC Organizers are putting the heat on Pulte Homes, one of the nation's largest home builders, after more than 30 nonunion carpenters came forward reporting they hadn't been paid their for months worth of work.

Demonstrations have been held at Jonathan's Landing in Braintree and South Natick Hills in Natick and the workers have filed wage complaint forms with the Massachusetts Attorney General's Office. Most of the workers are owed nine week of wages and overtime, totaling $3,500-$4,000 each, from work they did in Braintree, Natick and another site in Wakefield, Rhode Island.

Multiple subcontractors have worked and been dismissed from the Pulte sites, each employing the same group of carpenters. Pulte acts as the general contractor on many of their projects, directly hiring and paying subcontractors.

It is unclear whether Pulte paid the subcontractors who did not pay the carpenters. But what is clear is that these are projects being built and sold by Pulte, who boasts "Pulte Homes' culture is wrapped around a strong sense of family and a small company atmosphere."

The Quincy Patriot-Ledger ran a story on the issue today.

More bad guys nabbed in New London
Posted by NERCC on April 20, 2011 at 12:00 AM

From the New London Day:

New London - The state Department of Labor issued nine stop work orders Friday to several subcontractors at the Bates Woods housing construction site for violating labor laws.

Members of the New England Regional Council of Carpenters were protesting at the Jefferson Avenue site Tuesday after the state charged that the subcontractors were either employing independent contractors to avoid paying workers' compensation insurance or they were under-reporting the number of people on their payrolls.

Read the full story here.

McCarron writes on misclassificiation
Posted by NERCC on April 07, 2011 at 12:00 AM

Doug McCarron, General President of the United Brotherhood of Carpenters and Joiners of America has written a piece on misclassification and tax fraud in the construction industry that was just published by the Construction Labor Report. It can be read here.

DOL crossing borders to root out pay scams
Posted by NERCC on April 07, 2011 at 12:00 AM

The United States Department of Labor’s district office in Hartford has announced an initiative to aggressively pursue wage and hour violations on construction sites in Rhode Island and Connecticut.

“Due to the competitive nature of the construction industry, some contractor and subcontractors cut corners with respect to wages, hours and employment conditions,” said Neil Patrick, the Wage and Hour Division’s district director in Hartford. “The Wage and Hour Division is developing new strategies to better identify and remedy widespread labor violations so workers are protected against exploitation and law-abiding employers are not placed at a competitive disadvantage when they play by the rules and pay fair wages.”

NERCC staff in the two states have been pushing for increased enforcement as harsh economic conditions in the construction industry have made it more tempting for project owners and general contractors to look the other way at violations. Several meetings have been held with state and federal enforcement agencies in the last year where multi-state investigations have been a main point of discussion.

Because so many general contractors and subcontractors move across city and state borders, coordinated efforts are essential to make a significant impact on contractors and the industry as a whole.

The DOL plans to look at general contractor and subcontractors on projects in Connecticut and Rhode Island to uncover patterns of cheating. The Wage and Hour Division conducted nearly 300 investigations in the construction industry in the last ten years, recouping $5.6 million for almost 3,300 workers.

“These numbers how that we need to change industry behavior across the board, not simply on an employer-by-employer basis,” Patrick said. “Paying workers the proper wages is the employer’s responsibility. We particularly want to encourage general contractors to require and ensure Fair Labor Standards Act compliance by all of their subcontractors.”

Follow up from Fox 5 in Georgia
Posted by NERCC on February 22, 2011 at 12:00 AM

The Local Fox affiliate in Georgia that ran a piece about illegal immigrants being hired to work on public school projects in that state has run a follow-up. The second piece focuses on a group of more than 50 workers who were not paid for work they performed for a masonry contractor.

I-Team: Hiring Illegal Immigrants Pt. 2: MyFoxATLANTA.com

Schools, GCs play "hear no evil, see no evil..."
Posted by NERCC on February 17, 2011 at 12:00 AM

I-Team: Hiring Illegal Immigrants: MyFoxATLANTA.com

A Fox station in Georgia--and Georgia workers--take up some of the same issues NERCC has been working on. In this case it is immigrant workers building public schools without any attempt to verify their status. This is despite laws in Georgia requiring the use of the federal e-verify system.

The workers are not hired by the general contractor or even a subcontractor. They're brought in by a subcontractor to a subcontractor and are each paid as so-called "independent contractors" themselves.

When the reporter confronts the general contractor--the one who celebrates their winning low bid and will brag about the project's completion at the end--they shrug and claim to not know and not be responsible. The subcontractor doesn't respond to requests for information.

So who's responsible for the project and the laws being broken on them in the name of lowering the project cost? Whether it's the employment of undocumented workers or the classification of workers to cheat the government out of revenue and the workers out of basic protections, there are crimes being committed. The victims of the crimes are:
--The people in the industry who play by the rules and, therefore, can't compete.
--Workers who can't get jobs because they won't give up their protections and can't afford to work for what illegal immigrants do.
--Entire communities, which must struggle with budget crisis's exacerbated by cheating employers.

Carpenters Local 1996 responds to elimination of task force
Posted by NERCC on February 08, 2011 at 12:00 AM

John Leavitt, Business Manager for Carpenters Local 1996 recently wrote an editorial piece published in Mainebiz regarding the recent Executive Order issued by newly elected Maine Governor Paul LePage eliminating the state’s Task Force on misclassification. The Governor claimed the work the Task Force was doing was “a bad direction for the state, so we are going to try to reverse that.”

The Task Force was established by an Executive Order in 2009 by then-Governor John Baldacci after studies showed the state was losing as much as $36 million a year in tax revenue due to misclassification. As in other states, the Task Force was given two goals: clarify language regarding employee status and eliminate barriers to information sharing and cooperative enforcement among government agencies. Because misclassification involves issues of workers' compensation, unemployment and taxes, there are usually multiple agencies involved, each with concerns about sharing personal information collected during investigations. Task forces in many states have been effective in finding ways to accommodate those concerns while opening lines of communication and enforcing all of the laws and regulations involved.

Leavitt’s letter was published in the ‘Perspectives’ section of Mainebiz, where he points out that “this new executive order promotes poor business, not good business, and is a major step backward for Maine people.”

You can read the entire letter here.

Data shows large problem with worker misclassification
Posted by NERCC on January 14, 2011 at 12:00 AM

Speakers at a panel session of the Labor and Employment Relations Association annual meeting reported that there has been an increase in the likelihood and costs associated with getting caught for misclassification and underreporting of workers in the construction and other industries.

The panelists presented evidence of employers treating workers as independent contractors when they are in fact employees. A striking report discussed by the panel shows a significant discrepancy in data, one which “suggests an explosion in the misclassification of workers,” notes James Parrott, deputy director and chief economist for the Fiscal Policy Institute of New York.

The report shows that there was a growth rate of 20 percent for workers paid as independent contractors who received 1099s. Across the same time period, there was only a .5 percent increase in employment figures for workers who receive W-2 forms. The large gap between the growth of nonemployer “independent contractors” versus payrolled employees “likely reflects an increase in misclassification,” Parrot said.

Matt Capece, an attorney with the United Brotherhood of Carpenters emphasized that this problem is not just about illegal immigration, but that it “has gotten to the point where it encompasses not only undocumented workers, but people who are documented citizens of the U.S.”

Capece went on to add that adequate enforcement is needed because “…we are dealing with a class of people who don’t care about the law at all. The law is just a traffic cone for them to avoid.”

To read more about the panelists findings, click here.

FOX 25 hits employers who exploit
Posted by NERCC on November 09, 2010 at 12:00 AM

Mike Beaudet of the FOX 25 Boston's Investigative Team reported last night on employers who hire and exploit immigrant workers with little or no regard for getting caught or punished. (story embedded below)

The story includes the tale of drywall carpenters employed Jared Stevens and Elite Drywall to perform work on a new Wicked Pizza location at the Legacy Place Mall in Dedham. NERCC Organizers confronted Stevens about the fact that his employees were owed $15,000 in wages for work they had performed at Wicked Pizza and another job in New Hampshire. The workers eventually went on strike, a story that was the focus of this NERCC video last month.

In the FOX piece, Jessica Vaughan with the Center for Immigration Studies said government efforts to crack down on employers hiring and exploiting illegal immigrants has not been enough of a deterrent so far.

“Essentially what happens is these workers pretend to be legal and the employers pretend to believe them. And that's how everybody is able to keep the system going. “It is easy for them to get away with it because there are no penalties. There's no deterrents for them. In most cases, what they're facing is a slap on the wrist or a warning," she said.

Bruce Foucart, ICE Special Agent in Charge of Homeland Security Investigations in New England, told Beaudet that focusing on employers rather than individual workers would have a greater impact, but claimed budget issues and the newness of the enforcement efforts has limited their success. He admits the problem exists and the bad guys are the ones making out.

“It exists out there and the bottom line with that is the employers are benefiting. They're benefiting if they have an illegal workforce," Foucart said. "Employers are getting away with it obviously and given limited resources we're doing the best we can."

After years of trying to tackle the problem by targeting immigrant workers, several years ago the New England Regional Council of Carpenters changed their focus in a way that is now being mirrored by enforcement agencies. Since the union began helping immigrant workers who are not paid properly, they are more likely to blow the whistle on employers who win work over honest union contractors by cheating.

The union has also found it more beneficial to bring public shame to contractors and those who employ them, including owners who go out of their way to claim they don't know what's involved in lowball bids. Unlike immigrant workers and some subcontractors, they can't as easily disappear from the jobsites, or the communities in which they do business.

Wicked big problems at Legacy Place
Posted by NERCC on October 21, 2010 at 12:00 AM

When six carpenters weren't paid the wages they were owed working on a Wicked Pizza at the upscale Legacy Place shopping center in Dedham, Mass., they turned to the Carpenters union for help. Though they weren't union members, anytime a contractor can get away without paying carpenters, it undermines industry standards and union members. As fellow carpenters, helping them is also just the right thing to do.

So NERCC Organizers Marty Coyle and Manny Gines organized a demonstration with other staff that quickly got the attention of the mall's management. Security scrambled on a Segway in a golf cart and a pickup truck. Police were called not once, but twice, even when the demonstration moved to the busy, but public sidewalk along busy Route 1.

Elite Drywall employed the carpenters on the Wicked Pizza project and on another job in New Hampshire. After promising to deliver checks to the carpenters, they simply strung them along until the carpenters walked off on strike. They've since filed wage complaints in Massachusetts and New Hampshire to recover the $15,000 they are owed.

Mass 1099 task force reports increased success
Posted by NERCC on October 20, 2010 at 12:00 AM

The Massachusetts Joint Task Force on the Underground Economy and the Employee Misclassification (JTF) has released its annual report for 2010, showing a dramatic increase in collected taxes owed and penalties issued. The report, summarizing the second year of work by the JTF, lists $6.5 million was collected through cooperative enforcement, up from $1.4 million last year. The total includes $2 million in new unemployment insurance taxes $1.5 million in overdue taxes collected through 196 audit investigations and $1.87 million in fines as a result of 3,676 stop work orders issued for lack of workers' compensation insurance. The JTF was formed by an Executive Order of Governor Deval Patrick early March of 2008. There are now more than a dozen state agencies sharing information relevant to the underground economy and cooperating in enforcement efforts. The full annual report is available online here.

Workers who feel they are being misclassified can request assistance here.

Video: Organizers help carpenters in Holliston, MA
Posted by NERCC on August 13, 2010 at 12:00 AM

Organizers from the New England Regional Council of Carpenters help non-union carpenters in Holliston MA, collect their unpaid wages on another JJ Welch jobsite (read more here). The carpenters were working for subcontractor Hampton Building.

Flooring contractor hit by Mass AG
Posted by NERCC on July 22, 2010 at 12:00 AM

Santangelo Flooring and Mark Santangelo individually have been ordered to pay fines totaling $1500 and pay back workers money they are owed as a result of the company’s violating prevailing wage laws in Massachusetts.

The violations occurred on several public jobs in the Commonwealth, mostly in 2009. NERCC Organizers found workers were not being paid properly and reported it to the state, which led to the investigation and workers being paid a total of close to $7,000.

Work for pay. Simple concept, no?
Posted by NERCC on July 16, 2010 at 12:00 AM

In what is becoming an disturbingly common occurrence, construction workers in Boston are walking a strike line in an attempt to get paid for work performed. The latest strike is in Brookline, Massachusetts, where a group of workers are owed up to five full weeks of pay for work they performed at the Longwood Towers.

New Haven Drywall was hired to do drywall work for the project and may have subcontracted the work to a "coyote" or another company. One thing is clear: workers are having their wages stolen.

Be clear: this is not a case of workers striking for higher wages or work that went to someone else. These workers did the work they were asked to do and are seeking the wages they were promised for that work.

File under: Why unions are still necessary.

Wicked Local covers here.

NERCC standing up for ALL carpenters
Posted by NERCC on July 12, 2010 at 12:00 AM

A group of construction workers, hired by Universal Contracting, a subcontractor hired by J.J. Welch of Salem, MA, were not paid for their work on the site of a Codman Square Neighborhood Development Corporation construction site. Organizers from the New England Regional Council of Carpenters help the non-union workers organize and strike in order to demand their pay from JJ Welch, after Universal ran out on the job.

Additional penalty for All-Pro Construction
Posted by NERCC on April 23, 2010 at 12:00 AM

As reported last week, Sylvain Michaud, Bill Poulin and their company, All-Pro Construction Management, were issued significant penalties by the Massachusetts Attorney General’s Office for wage and reporting violations in cases referred by Organizers for the New England Regional Council of Carpenters. A press release issued today by the MA Attorney General’s office issued today announces the company has been debarred from bidding or contracting public projects for six months.

A total of $25,000 in penalties was issued for four violations including misclassifying its workers as independent contractors on construction projects in Framingham, Newton, Boston, Needham, and UMass/Lowell. Michaud and Poulin of All-Pro Construction, based in Hudson, NH, were also cited for failure to make timely payment of wages, failure to submit true and accurate certified payroll records on public construction projects, and failure to maintain true and accurate general payroll records. The owners and their company have agreed to pay a $25,000 penalty to the Commonwealth for the violations. All-Pro Construction will be debarred from bidding or contracting for any new public projects in the Commonwealth for six months.

A total of $25,000 in penalties was issued for four violations, the largest being for misclassifying employers as independent contractors, which earned them a $19,000 fine. They also were assessed $2,000 each for failure to make timely payment of wages, failure to submit true and accurate certified payroll records and failure to keep true and accurate payroll records.

The violations occurred between January 1, 2008 and January 22, 2010 involving work the company performed at Maintenance Building Repairs in Framingham; Fire Station #4 in Newton; the Fish Pier renovation in Boston; the Administrative Building Construction in Needham; and the Fox Hall Renovations in Lowell.

To read the MA Attorney General’s Press Release click here.

Governor of Maine signs act to amend laws governing misclassification of construction workers
Posted by NERCC on April 23, 2010 at 12:00 AM

Governor John Baldacci has signed an act to amend the laws governing the misclassification of construction workers, specifically Stop Work Orders.

The amendment authorizes the Executive Director of the Workers' Compensation Board to issue a stop-work order after an administrative hearing if a contractor has (a) failed to provide workers' compensation coverage and (b) there has been at least one previous notice of a non-coverage violation, or the contractor has cancelled or failed to renew a policy. The stop work order will be stayed if the contractor shows that coverage has been obtained and will be maintained for its employees or subcontractors or for independent contractors whose status as employees is in question. It also extends the notice of hearing provision from 48 hours to 3 business days.

Last June, LD 1456 was signed, which was an act to ensure that construction workers are protected by workers’ compensation insurance. At the time, stop work order language was removed from the bill to make certain the bill would pass. The recent signing of the Stop Work Order amendment is the missing piece that is needed to ensure enforcement of the laws.

To view a PDF of the recently signed amendment click here.

Employee Misclassification Protection Act Introduced in Congress
Posted by NERCC on April 23, 2010 at 12:00 AM

Senator Sherrod Brown (D-Ohio) and Rep. Lynn Woolsey (D-Calif.) introduced a bill that would make worker misclassification a violation of federal labor laws, increasing penalties for companies found to improperly classify workers as independent contractors.

By misclassifying workers as independent contractors, companies avoid withholding income taxes and paying Social Security and Medicare taxes. Each year, more than $4.7 billion in federal income and employment tax revenue is lost due to misclassification, and billions more are lost at the state level. Companies that misclassify workers save up to an estimated 30 percent on payroll costs, gaining an unfair advantage over their more responsible competitors.

The bill would require employers to classify workers as employees, using a well-defined test that has existed since 1947, and establishes a penalty for failing to do so. It requires that employers tell workers if they have been classified as independent contractors and how they can challenge that classification. The bill also protects workers who do challenge misclassification from retaliation.

The bill is another step forward in the ongoing efforts to protect workers, uphold labor standards, and level playing field for responsible contractors.

Mass AG hits company for $25k
Posted by NERCC on April 15, 2010 at 12:00 AM

Sylvain Michaud, Bill Poulin and their company, All-Pro Construction Management, have been issued significant penalties by the Massachusetts Attorney General’s Office for wage and reporting violations in cases referred by Organizers for the New England Regional Council of Carpenters.

A total of $25,000 in penalties was issued for four violations, the largest being for misclassifying employers as independent contractors, which earned them a $19,000. They also were assessed $2,000 each for failure to make timely payment of wages, failure to submit true and accurate certified payroll records and failure to keep true and accurate payroll records.

The violations occurred between January 1, 2008 and January 22, 2010 involving work the company performed at Maintenance Building Repairs in Framingham; Fire Station #4 in Newton; the Fish Pier renovation in Boston; the Administrative Building Construction in Needham; and the Fox Hall Renovations in Lowell.

Conn holds panel on 1099s
Posted by NERCC on March 19, 2010 at 12:00 AM

A joint committee consisting of labor and industry leaders as well as various state investigative agencies is suggesting much stiffer fines and criminal sanctions against employers who misclassify workers as independent contractors.

Attorney General Richard Blumenthal served as a co-chair of the group with Acting Labor Commissioner Linda Agnew.

Blumenthal called a crackdown on misclassification “long overdue -- because it does devastating harm to taxpayers, workers and honest businesses.

The University of Connecticut found that misclassification costs the state more than $10 billion in unpaid workers compensation premiums, unpaid payroll taxes and medical care for workers that is not reimbursed.

Blumenthal and other state agencies have investigated more than 350 employers in the last two years for misclassifying workers. Hundreds of “Stop Work” orders were issued against contractors who were not properly covering employees with workers compensation.

The group has recommended to lawmakers changes that would increase penalties against employers who misclassify from $300 per incident to between $300-$1,000 per day for each violation.

Press coverage is linked below, including video of this week’s press conference at which Blumenthal expanded on the group’s findings and recommendations.

The Connecticut Network has posted video of the press conference.

ConnPolitics.tv and the Connecticut Mirror posted stories and the Hartford Business Journal has posted several stories on the issue in the past year.

More from Maine on Misclassification
Posted by NERCC on March 02, 2010 at 12:00 AM

The following article appeared in the York County (ME) Journal Tribune.

By KRISTEN SCHULZE MUSZYNSKI
City Editor/ Journal Tribune
Revisions are underway on a new law that was created to enforce tax laws but has unintentionally made it difficult for some independent contractors to work in Maine.

The law, "An Act to Enforce the Misclassification Law for Construction Workers," became effective Jan. 1 and incorporates a new 12-part test to determine whether a construction worker is an employee or an independent contractor.

It was created to crack down on employers who have been avoiding paying for worker's compensation insurance and some federal taxes by mis-labeling employees as independent contractors. The law goes hand-in-hand with federal efforts that began this month to increase enforcement and regain the taxes that are lost each year to misclassification.

"It's a huge concern, not only in Maine but nationally," said Paul Dionne, executive director of the Maine Workers Compensation Board.

According to a 2005 Harvard Law School study, an estimated 3,213 construction workers in Maine were misclassified between 1999-2002. Income tax revenue is lost from these workers, costing the state an estimated $2.6-4.3 million annually, the study states, and up to $6.5 million of worker compensation premiums are not paid annually for these workers.

The governor's task force on worker misclassification submitted its first annual report Thursday, citing progress in increasing education about the issue and improving inter-agency communication.

Unemployment insurance, workers' compensation, health insurance and other employee benefits are not available to those who are misclassified as independent contractors, the task force report states.

Misclassified workers are found in several fields, but the practice is more prevalent in the construction industry. The task force report notes that the Maine Department of Labor reviewed unemployment audits and found that the misclassification of employees occurred in 29 percent of employers audited across all industries in 2004; 39 percent in 2005; 43 percent in 2006; and 41 percent in 2007.

"It's been running loosey-goosey and now it's become the norm," said John M. Leavitt of Saco, business manager of the New England Regional Council of Carpenters. "It's unbelievable that it got this unraveled."

Task force members heard testimony from various people who have been negatively impacted by worker misclassification, as noted in their annual report: One worker told the task force about hospital bills he couldn't pay because he had been misclassified, while a Maine taxi company told the force about being driven out of business by competing cab companies who misclassify their employees.

An amendment to the new law is currently being considered that would allow the state to shut down work on a construction site until the insurance is purchased and prohibit the contractor from taking on any public projects for three years.

That change would be a "real attention-getter," said Leavitt. Those workers who avoid paying worker's compensation insurance will always be able to bid lower than those who follow the laws, said Leavitt ­ an estimated 30 percent less.

"It is a great expense (to purchase insurance), but there is an expense to running a business," he said. "There's a responsibility to the employees and the industry. It's not a matter of fair or unfair, it's illegal. People who say it'll hurt their business, that's not a business, that's a guy who's beating up his workers to make a profit."

Problems have arisen, however, for independent contractors who have found that the new law requires them to re-apply for their status each time they get a new job or new employer.

"It's been very difficult for independent contractors to apply for a number of jobs," said Dionne. "If they get 40-50 jobs a year, they need to apply each time if the insurance mandates it." In response to concerns from contractors throughout the state, the Labor Committee of the Legislature has been reviewing the bill in the past few months for revisions.

"It's a difficult situation," said Rep. John Tuttle, D-Sanford, who is chairman of the Labor Committee. "In the weeks ahead, we hope we can work something out." Along with the proposed penalties, a shorter application form has been developed to determine independent contractor status and it will be made an annual request, said Dionne. The approval will also be made portable between employers.

"What we're trying to do is simplify the process for everybody," he said.
Dionne stressed that the form is not mandated by the state or the workers' comp board, even though insurers such as MEMIC have been requiring employers to show who is an employee or an independent contractor, to determine premiums.

Tuttle said the bill was originally intended to address the concern that some workers have no worker's compensation insurance, and to protect those employers who follow the laws.

City Editor Kristen Schulze Muszynski can be contacted at 282-1535, Ext.
322 or kristenm@journaltribune.com. The Journal Tribune is located in Biddeford, Maine.

NPR highlights misclassficiation investigation at Stowe.
Posted by NERCC on January 06, 2010 at 12:00 AM

Vermont Public Radio broadcast a story Tuesday about the problems the Stowe Mountain Lodge is facing as the state Department of Labor investigates the misclassification of workers building a new luxury year-round retreat.

Union carpenters, including Council Representative Matt Durocher, are heard speaking in the piece as they banner and talk to visitors. They have been trying to raise awareness of the business practices of Kal-Vin Construction, who is performing drywall work. Pizzigalli Construction is the General Contractor on the project.

Kal-Vin, out of Hudson, New Hampshire, operates under several different names, that seem to share a common interest in misclassifying workers to lower their cost. Unfortunately, the scheme puts workers at risk and gives them an unfair--and illegal--advantage against honest union and nonunion contractors.

Kerry Sponsors Bill Aimed at Misclassification of Workers
Posted by NERCC on December 17, 2009 at 12:00 AM

Full story here…

Sen. John F. Kerry, D-Mass., introduced legislation this week that would toughen standards for employers in transportation and other industries that use independent contractors.

The bill introduced Dec. 15 is aimed at tightening a provision in the tax law that businesses argue simplifies the tax code but critics say allows employers to misclassify workers and avoid payments of benefits and unemployment taxes.

Kerry is targeting Section 530 of the Revenue Act of 1978, known as the “Safe Harbor” provision. The provision allows employers to classify workers as contractors for employment tax purposes without undergoing a common law test of their status, unless the employer’s classification has no “reasonable basis” or fails certain requirements.

Kerry’s bill, the Taxpayer Responsibility, Accountability and Consistency Act of 2009, would require companies to file reports with the Internal Revenue Service on each corporate provider of property and service to whom they pay more than $600 a year.

It would make additional changes to Section 530 to reduce abuses, Kerry and the bill’s co-sponsors, all Democrats, said. “This is about leveling the playing field and ensuring that America's workers receive the protections and pay they deserve,” he said.

CT papers cover Stop Work orders
Posted by NERCC on December 15, 2009 at 12:00 AM

The State of Connecticut continues its fight against misclassification of employees and has issued five more Stop Work orders on a job in Fairfield. The orders were posted at the Patterson Club, a new country club being built by general contractor AP Construction.

NERCC Organizer Ted Duarte and Bob Kravitz, owner of union company Whitehawk Construction Services, were quoted in news stories about the action taken by the Connecticut Labor Department:

Bob Kravitz, owner of Whitehawk Construction Services LLC, of Canton, said he bid to do the millwork installation at the Patterson Club, but didn't get the job.

And it was the millwork installers who were cited by the state at the Patterson Club.

"I bid on a number of packages," Kravitz said of his attempt to win the work. He said the selection process included showing the potential client the jobs he's done at Yale University.

"But then the trail went cold," he said. And the job went to someone else.

Kravitz said this is not the first time it's happened. He's lost jobs before to nonunion shops. Sometimes he ends up with the work anyway, he said, because the job gets botched. But, he said, it's never as big a job as it would have been if he'd gotten the project in the first place.

How misclassification works and why it hurts union carpenters and contractors is explained very well in the article, making it a good independent information source to forward to elected officials and others involved in the construction industry. It is available online here.