Tulsa contractor pays more than $200K in unpaid wages

Wiljo Interiors was sub-contracted by prime contractor Cherokee CRC LLC to work on a $2.9 million federally-funded construction project at the Riverside Indian School in Anadarko, Oklahoma. Wiljo Interiors then brought in an additional sub-contractor, Strong Rock Drywall LLC, of Tulsa, Oklahoma, misclassified its owner and workers as independent contractors, yet dictated what they would pay them. Strong Rock also failed to pay its employees as required by law, but their work was directed and controlled by Wiljo. Therefore, the division found there was a joint employment relationship between the two employers, holding both employers responsible, both individually and jointly, for compliance with the Fair Labor Standards Act (FLSA).

Strong Rock Drywall employees worked 50 to 70 hours per week, but since they were misclassified as independent contractors, were paid only straight time for all the hours they worked, being denied legally-required overtime for hours beyond 40 per week. Employees were also denied fringe benefit payments required on this federally-financed contract under the Davis Bacon Act.

Wiljo Interiors, Inc. paid $208,756 in overtime back wages, prevailing wages and fringe benefits to 178 Strong Rock construction workers to remedy the violations. Additionally, the company acknowledged they were the controlling employer and committed to properly classifying workers as employees, using the correct job classification when determining workers’ prevailing wage rates and paying fringe benefits required by law in the future.

“When a joint-employment relationship exists, we will hold those companies accountable when wage violations occur and workers are cheated,” said Betty Campbell, acting regional administrator for the Wage and Hour Division in the Southwest. “Simply labeling a worker as an independent contractor does not mean they are not truly an employee. Misclassified employees are not only denied fair wages, they are also denied access to critical benefits and protections. The Wage and Hour Division is vigorously pursuing corrective action in those situations when workers are, in fact, employees to ensure that they are paid their legally-required wages and to level the playing field for employers who play by the rules.”

Source: www.dol.gov

Carpenters donate over 100 toys to Toys for Tots

In an ongoing effort to give back to the community, Local 1005 of the Indiana/Kentucky/Ohio Regional Council of Carpenters (IKORCC) collected and donated toys to the U.S. Marine Corps Reserve Toys for Tots program this past holiday season.

The Toys for Tots Program collects new, unwrapped toys for children each year. Local businesses serve as collection sites where community members can drop off toys, and the collected toys are distributed to less fortunate children within the community so they can experience the joy of Christmas.

Working with Reggie Hess, Marine Corps League District 1 Vice Commandant, Local 1005 collected over 100 toys and gift cards. “We are so appreciative of the support from Local 1005. We had a very successful holiday season, and it could not have been done without their generosity,” commented Hess. “This past year, we provided over 2,400 Christmas presents to children in Porter County, and in some cases, we were able to give out up to five toys per child. It’s because of generous people like those in Local 1005 that we are able to bring happiness to kids and families on Christmas day.”

Throughout the year, IKORCC members volunteer in their local communities in countless ways, including collecting donations for local charities. “It’s all about giving back to the community and to those who may be going through a tough time,” commented Eric Yuhasz, Local 1005 Secretary and IKORCC Representative. “We have so many members who willingly volunteer time, talents and donations without hesitation. There really isn’t a better feeling than witnessing the joy and graciousness of the families receiving our volunteer services.”

Carpenters donate over 100 toys to Toys for Tots

In an ongoing effort to give back to the community, Local 1005 of the Indiana/Kentucky/Ohio Regional Council of Carpenters (IKORCC) collected and donated toys to the U.S. Marine Corps Reserve Toys for Tots program this past holiday season.

The Toys for Tots Program collects new, unwrapped toys for children each year. Local businesses serve as collection sites where community members can drop off toys, and the collected toys are distributed to less fortunate children within the community so they can experience the joy of Christmas.

Working with Reggie Hess, Marine Corps League District 1 Vice Commandant, Local 1005 collected over 100 toys and gift cards. “We are so appreciative of the support from Local 1005. We had a very successful holiday season, and it could not have been done without their generosity,” commented Hess. “This past year, we provided over 2,400 Christmas presents to children in Porter County, and in some cases, we were able to give out up to five toys per child. It’s because of generous people like those in Local 1005 that we are able to bring happiness to kids and families on Christmas day.”

Throughout the year, IKORCC members volunteer in their local communities in countless ways, including collecting donations for local charities. “It’s all about giving back to the community and to those who may be going through a tough time,” commented Eric Yuhasz, Local 1005 Secretary and IKORCC Representative. “We have so many members who willingly volunteer time, talents and donations without hesitation. There really isn’t a better feeling than witnessing the joy and graciousness of the families receiving our volunteer services.”

Who are my legislators in Kentucky?

The Kentucky Legislative Research Commision provides a map to reveal the elected officials in your area. You can use the search by address at the top or select your location. By clicking on his/her bio page, you can find contact information including phone, email and mailing adress. We encourage everyone to reach out to your elected officials regarding issues of concern. 

Fun Fact Friday

Prevailing Wage Controls Costs

A study of 3 states – including Kentucky – found no meaningful cost difference on school construction comparing states with and without prevailing wage.*

Why do the costs not go up with prevailing wage?

  • Labor only makes up 21% of total building construction costs in Kentucky. Reducing wages doesn’t produce any savings without paying workers illegally below minimum wage. However, productivity does drive the cost of construction. Skilled workers on prevailing wage jobs are 15% more productive than less-skilled workers. 
  • Kentucky taxpayers get better project quality and self-sustaining jobs at no additional cost to the taxpayer. Lowering local standards for construction wages attracts a lower skilled, out-of-area workforce which results in large productivity losses, costly errors on the construction project, inefficient use of expensive materials and fewer jobs for Kentuckians.

*Kentucky’s Prevailing Wage Law, Phillips, P., 2014.

 

Class representative addresses crowd at graduation banquet

Jerome Stanford completed the apprenticeship program with hundreds of others from Indiana and Kentucky and were honored with a completion ceremony in December 2015. As the selected speaker to represent the graudation class, Jerome addressed the members and guests that night.

 

 

Why should politics matter to you?

American workers have felt a slow decline in their wages since the early 1980s, meaning wage increases have been slightly lower than the cost of living increase. This means less money for groceries, clothing, your children and the everyday essential you may need for raising a family or saving for retirement.

Union wages for the construction industry are no different, except unions have contracts that include wage increase, healthcare and retirement plans. With ongoing training programs for apprentices and journeymen this allows the workers to be more skilled than the nonunion workers. Productivity levels are higher, accidents are lower, and attitudes on job sites are more positive than ever before because of the investments in training by the members and their union. These union contracts are agreements between Labor and Contractors. The more highly skilled workers usually result in better wages, better working conditions and better benefits for their family.

On the other hand, payroll fraud is spreading rampant through the construction industry. This is where unscrupulous nonunion contractors choose to hire hourly workers and pay them cash or as independent contractors (1099s) by not withholding the employee’s state or federal tax deductions, FICA withholdings and Medicare deductions, leaving this responsibility on the workers to pay.

Learn more about payroll fraud 

Who are my legislators in Kentucky?

The Kentucky Legislative Research Commision provides a map to reveal the elected officials in your area. You can use the search by address at the top or select your location. By clicking on his/her bio page, you can find contact information including phone, email and mailing adress. We encourage everyone to reach out to your elected officials regarding issues of concern. 

Fun Fact Friday