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Labor Department Launches New Web Page on Worker Misclassification
/0 Comentarios/en News /por IKORCCby Scott Braddock on Wed, 12/28/2016 – 9:17am
Heading into the new year, the federal government is ramping up efforts to educate employees and employers about the harms caused by worker misclassification. It’s a problem we’ve documented extensively over the years on Construction Citizen.
Our readers know very well that worker misclassification happens when a business pretends its employees are “independent subcontractors” with the intent of avoiding payroll taxes and benefits like workers’ compensation insurance and – thanks to reduced labor costs – are able to submit lower bids for projects, undercutting law-abiding companies. Of course, there are many legitimate and legal uses of contract labor. The problem arises when businesses abuse the designation with the intent of skipping out on taxes and providing benefits for people being utilized as employees.
The Department of Labor this month launched a new webpage devoted to the topic. The site makes the case that worker misclassification negatively impacts everyone: Workers, employers, and all taxpayers who have to pick up the slack when unscrupulous employers shirk their responsibilities.
The site outlines various things misclassified workers miss out on like “minimum wage and overtime pay, protections from anti-discrimination and anti-retaliation laws, workers’ compensation if injured on the job, unemployment insurance, health and safety protections on the job, and employer-sponsored benefits.”
The Labor Department site also points out that even though there are some state efforts to crack down on the practice, it is already illegal.
“Businesses found to have misclassified their workers expose themselves to fines and liability for unpaid wages and unpaid taxes,” the page says. “Competitor businesses who misclassify gain an unfair advantage by unlawfully lowering their personnel costs (for example, by not paying all wages, providing benefits, or providing necessary safety equipment when they should).”
Meantime, “Governments lose revenue, which in turn hurts taxpayers and undermines the economy.”
The page also includes links to news releases, an administrator’s interpretation of the issue, a video explaining misclassification and other resources from the Wage and Hour Division of the department. You’ll also find industry-specific guidance, since misclassification is not solely a problem in construction, and whistleblower protections from the department’s Occupational Safety and Health Administration.
The Internal Revenue Service publication that describes that agency’s worker classification criteria for tax purposes is included on the site as well. It also highlights agreements the Labor Department has made with 35 states to collaborate on investigating worker status violations.
Opinion: How prevailing-wage laws help veterans
/0 Comentarios/en News /por IKORCCChicago Sun Times
OPINION 12/08/2016, 06:51pm
Mike Pounovich and Marc Poulos
In about six weeks, President-elect Donald Trump and the two houses of Congress will own responsibility for delivering on some big promises.
Two featured repeatedly in his campaign were fixing our infrastructure and “taking care of vets” who are being treated “horribly.”
These two issues are not as disconnected as you might think
Veterans work in construction at higher rates than non-veterans. And the military invests heavily in training for these types of jobs — providing 22 percent of all skilled trade apprenticeships in the country today.
Research and our own experience inside the industry shows that the key policy driving many veterans and others into these middle-class construction careers is prevailing wage laws — the minimum wage for skilled construction work. Prevailing wage laws not only make veterans more likely to pursue a career in the trades, they also reduce the likelihood of a veteran in construction living in poverty by as much as 30 percent. They promote higher workmanship, safety, and efficiency standards on public construction projects. And by virtue of providing more working families with money to spend in their communities, they are proven to boost job creation across all sectors of the economy.
While these laws were created by Republicans and have long enjoyed broad bipartisan support, many in President-elect Trump’s party are calling for their repeal. Vice President-elect Mike Pence repealed Indiana’s prevailing wage in 2015, and Illinois Gov. Bruce Rauner has gone so far as to hold the entire state budget hostage over a similar demand.
Now, after many blue-collar construction workers helped deliver the White House to Trump over his promise to immediately rebuild our nation’s outdated infrastructure, the question is what will happen to the national prevailing wage law (Davis-Bacon) that’s ensured these projects are done right for 85 years.
On the campaign trail, Trump famously said, “Every policy decision must pass a simple test: Does it create more jobs and better wages for Americans?” Most of the peer-reviewed evidence tells us that repealing prevailing wage laws fails this test spectacularly, and worse, would disproportionately hurt the hundreds of thousands of military veterans working in the construction industry today.
The beneficiaries would not be veterans or working Americans — but the wealthy “low road” contractors who have long supported anti-prevailing wage politicians like Pence, Rauner and Wisconsin Gov. Scott Walker. These special interests aren’t buying politicians because they are planning to send taxpayers a rebate check. Instead, because they know a race to the bottom on safety, wages, and craftsmanship translates to less competition and higher profits for them.
Trump surely knows prevailing wage laws have almost no impact on total project costs, since construction labor only represents about 20 percent of the average project budget.
These laws also make a huge difference for taxpayers who rely on quality roads, water systems, schools and bridges that are built correctly.
How Donald Trump’s infrastructure proposal balances the more extreme elements in his party with his promise to rebuild America’s infrastructure in a way that creates “more jobs and better wages for Americans” will help define his presidency.
Either he will keep faith with the working people and veterans he claims to represent, or he will game the system for low road special interests.
Mike Pounovich is an equipment operator and a former specialist in the U.S. Army Reserves who spent 12 months in Iraq building roads, bridges and other critical infrastructure.
Marc Poulos is the executive director and counsel of the Indiana, Illinois and Iowa Foundation for Fair Contracting, as well as a board member of the National Alliance for Fair Contracting and the Illinois Prevailing Wage Council.
2016 IKORCC Sisters in the Brotherhood Conference
/0 Comentarios/en Diversity, News /por IKORCCThe Indiana Kentucky Ohio Regional Council of Carpenters held its first annual Sisters in the Brotherhood Conference on October 13-14, 2016. The IKORCC SIB Chair, Teresa Moore, put together a great conference with special speakers, including Midwest District VP David Tharp, and EST Mark McGriff to name a few. The conference was a great experience for the sisters and gave them time to network, getting involved, and valuable leadership skills so they can reach their potential in our industry. Topics included politics, Roberts Rules of Order, UBC structure, Mentoring, community service, and Strategic Priorities.
Midwest District Vice President David Tharp
Executive Secretary-Treasurer Mark McGriff
IKORCC Sisters in the Brotherhood Chair Teresa Moore
Dayton, Ohio Mayor Nan Whaley
LeNee Carroll with Building Strong Communities
Steve Hoyt Political Report
Mary Runyon General Superintendent for Shook Construction
Michelle Stallings Mentoring and Retention
Casey Zadarin Roberts Rules Presentation
IKORCC 2016 Sisters in the Brotherhood Conference
Local 200 Veterans Parade
/0 Comentarios/en News /por IKORCCMembers of Local #200 and their families join in celebration of Veterans Day at the Whitehall 2nd Annual Veterans Day parade on 11-12-16
Veterans In Construction Will Want To Save Prevailing Wage Law
/0 Comentarios/en News /por IKORCCWednesday, 26 October 2016
Written by Drew Kelly
Study says wages will be reduced 7-10 percent if repealed
A repeal of a law going into effect in January will have a severely negative impact on military veterans.
That according to a study done by Midwest Economic Policy Institute (MEPI).
Prevailing wage, which makes sure those in construction get a livable wage on the job, is set to go away for local projects next year.
“Repeal of prevailing wage would actually reduce veterans income by 7-10 percent,” Frank Manzo, the policy director with MEPI, said. “(It) would lower the employer provided health coverage for vets in construction by 11-15 percent.”
Manzo says there is no evidence from other states that have passed this law that money has been saved.
In 2014 there was an estimated 200 veterans in La Crosse County employed as blue collar construction workers and this policy could put veterans in danger in these positions, especially since it cuts apprenticeship.
“Veterans who come home from fighting overseas,” Manzo explained, “now face an increased risk, if they’re working construction, when prevailing wage is repealed, because they’re colleagues are less trained, less invested in their community.”
The study says the law will strip 400 veterans of their health insurance. Over 8 percent of the construction workers in the state are veterans.
Manzo says if you are against prevailing wage being stopped, you should make your voice known at the polls in two weeks.
The move is expected to double the number of veterans living below poverty level.