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

Posted by National Alliance for Fair Contracting on

AUTHOR – Kim Slowey
PUBLISHED – March 11, 2019


Dive Brief:

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

Dive Insight:

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

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

(Read More)

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Getting the Word out about Wage Theft (MA)

Posted by National Alliance for Fair Contracting on

by Sue Woodcock * March 22, 2019

Quite simply, wage theft happens when someone does work and is not paid for it.

“Immigrants are easy targets, most don’t realize it’s a crime,” said Kathleen Santora, a member of the recently appointed to the Lynn Wage Theft Taskforce and a union painter representing the Painters Union District Council 35 Local 939. “But wage theft can happen to anyone in any industry.”

“We have a very strong ordinance in Lynn, it has some teeth in it and can actually do something,” Santora said. Having a taskforce in place also makes a difference.

The Wage Theft Taskforce, comprised of one (1) designee submitted by the Lynn City Council, one (1) designee submitted by the Mayor, one (1) representative chosen by the Lynn City Council from a list provided by the North Shore Labor Council, one (1) representative chosen by the Lynn City Council from a list provided by the Lynn Area Chamber of Commerce, one (1) representative chosen by the Lynn City Council from a list provided by the North Shore Latino Business Association, one (1) representative chosen by the Lynn City Council from a list provided by the North Shore Building Trades Council, one (1) representative chosen by the Lynn City Council from a list provided by the Lynn Worker Center, and one (1) representative from the Lynn community chosen by the Lynn City Council from a list provided by New Lynn Coalition. Members of the Wage Theft Advisory Committee may be reappointed annually and must be appointed no later than the second meeting of the new year.

The wage ordinance was passed by the Lynn City Council in March 2018 after it was offered as a motion by then City Councilor and now State Representative Peter Capano.

“A business owner has the opportunity to do the right thing and pay up. Then they can continue doing business as usual with a bond to cover paying the employee for a year or it can end up in the attorney general’s office,” said Santora, who is a leading advocate for the building trades. She was nominated to the committee by the North Shore Labor Council.

(Read More)

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IUPAT DC 35’s Longtime Member Kathleen Santora Gets Appointed to City of Lynn’s Wage Theft Advisory Commission (MA)

Posted by National Alliance for Fair Contracting on

by Journal Staff * March 15, 2019

Longtime IUPAT District Council 35-member Kathleen Santora, a leading advocate of women’s recruitment into the building trades, joins city’s advisory board to fight wage theft and worker’s rights violations in City of Lynn

Painters Union District Council 35 is proud to announce that member Kathleen Santora, an advocate of workers’ rights in the building trades and a Lynn resident, has accepted a position on the City of Lynn’s newly created Wage Theft Advisory Committee.

The Wage Theft Advisory Committee, created as part of a city ordinance, will begin meeting bi-monthly to ensure that known violators of Massachusetts wage laws do not receive contracts with the City.

“Now that the committee has been appointed, I am eager to get to work. Wage theft violations occur all over the country, and I’d like Lynn to set an example that this will not be tolerated in this city,” said Ms. Santora.

Ms. Santora was nominated to the position by North Shore Labor Council President Jeff Crosby in part for her tireless efforts on behalf of workers’ rights, particularly those of women.

Through IUPAT DC 35, Ms. Santora has been a leading advocate of women in the workforce. In addition to her participation in DC 35’s Women in Action program which seeks to reach out to all women in the trades, Ms. Santora participates in leading unions in the Tradeswomen Tuesday initiative and Girls in Trades events.

(Read More)

Massachusetts AG’s Office Aims To Clamp Down On Wage Theft (MA)

Posted by National Alliance for Fair Contracting on

By Arun Rath

February 26, 2019

Massachusetts’ ongoing construction boom has brought with it a problem: wage theft – when workers don’t get things like overtime or sick pay, or when they’re not paid at all – on a massive scale.

Last year, Attorney General Maura Healey’s office brought more than $2.7 million in penalties and restitution against local construction companies. Some of that money is going to the more than 1,000 Massachusetts workers who were victims of wage theft last year.

Javier Hernandez was one of them. He spent six months working construction on a new hotel in Porter Square. But he said that every time it was pay day, “They always say, ‘Next week. Next week. Next week.'”
It was the same story when the holidays came.

“I spent Christmas with no money,” Hernandez said. “I have a kid. 10 years old. So, I couldn’t buy a present for him. Because I’m still waiting for the money. And, and that’s so sad.”

Hernandez’ story is a familiar one to Gladys Vega of the Chelsea Collaborative – a Latino-led social services organization that assists a lot of immigrants and refugees. Vega said immigrants are often targets of unscrupulous employers.

“We probably get 10 to 15 people a week with individual cases of not getting paid, of wage theft,” Vega said. “So, I mean, it’s huge.”

In Hernandez’ case, the collaborative was able to work with partners like the local Carpenter’s Union to get the company to pay up. But when the companies don’t cooperate, it’s the job of law enforcement. And Healey has had a busy year busting wage thieves.”We went after a local construction company that wasn’t paying its workers overtime or hourly wages or the prevailing wage that they were supposed to be paying them doing public construction projects,” Healey said. “We cited them over half a million dollars.”

The AG’s office issued citations to 66 construction companies working in the state last year. Those companies face a combined $1.23 million in fines, in addition to providing back pay to more than 1,000 workers.

Healey said many of the investigations are prompted by tips from workers. But a lot of workers are immigrants or undocumented and are afraid to complain.

(Read More)

In Major Wage Theft Case, Ipswich Construction Company Cited $580,000 for Violating State Wage Laws (MA)

Posted by National Alliance for Fair Contracting on

Office of Attorney General Maura Healey – 2/28/2019

BOSTON – An Ipswich construction company and its owners have been cited $580,611 in restitution and penalties for violations of state wage and hour laws, Attorney General Maura Healey announced today.

The AG’s Office has issued six citations against ERA Equipment LLC and its owners, Kristen and Angelo Ciardiello, for a range of wage theft violations including failing to pay overtime and the prevailing wage. 

“Our investigation showed that this construction company stole hundreds of thousands of dollars from its workers,” said AG Healey. “Wage theft is a serious offense in Massachusetts and we will continue to take action when needed.”

The AG’s Office began its investigation in September 2017 after receiving a report alleging the company was not paying the proper prevailing wage. The investigation revealed that none of the company’s 13 employees received overtime pay when working more than forty hours in a week. Four employees were also not paid the appropriate prevailing wage rate while working on projects in the towns of Littleton, Scituate, and Wellesley, sometimes receiving less than half the prevailing wage rate required by law.

The investigation also revealed that the company failed to include some employees in the company’s payroll records, inaccurately reported the employees’ hours of work to avoid paying them overtime and kept inadequate and inconsistent payroll records.

The AG’s Office previously brought enforcement action against ERA and the Ciardiellos for nonpayment of wages, prevailing wage, and payroll records violations, including issuing citations that Angelo Ciardiello and his company, ERA Disposal LLC d/b/a ERA Equipment LLC, paid in 2015 for failing to pay five employees for one day of snow removal work.

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SAVE THE DATE – 21st Annual NAFC Conference, September 22-24, 2018 – Boston, MA

Posted by National Alliance for Fair Contracting on

January 2019

It’s our 21st Annual Conference and we wanted to ensure you save the date and join us in the great city of Boston, MA. The Conference will be held at the Sheraton Boston Hotel, in downtown Boston. The NAFC Annual Conference is attended by participants from across the nation, including representatives from labor organizations, responsible contractors, fair contracting compliance organizations as well as researchers, academics, attorneys and officials from federal, state and local governments.

Stay tuned for further information.

(Visit NAFC’s Conference Page)

Wage Theft in Downtown Worcester AGAIN! (MA)

Posted by National Alliance for Fair Contracting on

15 Jan, 2019
in Uncategorized by Kevin

This just isn’t right. Why are we seeing wage theft in downtown Worcester AGAIN! Worcester is in a renaissance we’re told, but many of the carpenters who are building the new Worcester continue to be victims of illegal business practices on high profile projects.

The stolen wages occurred at the historic Central Building at 332 Main St. This is a publicly supported project that has millions of dollars in public assistance. A partial listing of funding as recorded by the Worcester Telegram and Gazette begins, “MassHousing is providing a $3.7 million permanent loan and $1.4 million in workforce housing funding from the agency’s $100 million Workforce Housing Initiative. The project also received approximately $12 million through an allocation of federal and state low-income housing tax credits by the Massachusetts Department of Housing and Community Development, more than $3 million in direct affordable housing funding from DHCD, $1.2 million in HOME funds from Worcester, and approximately $5.3 million through allocations of federal and state historic tax credits.” (Worcester T&G – $5.1M financing deal for Central Building in Worcester 5/7/2016)

With this much public resources and taxpayer dollars you would expect this to be an exemplary project.

Sadly, Dellbrook Construction hired Nayelie Drywall, which is registered both as a Hartford, CT or Holyoke, MA subcontractor. Nayelie then stole wages from two non-union carpenters. After not receiving the money they were owed, these two Latino non-union carpenters came forward to the Carpenters Union for help.

“Worcester needs to stay vigilant in efforts to prevent wage theft. We’re willing to take on the Dellbrooks and Nayelie Drywall, but we’re hoping the Worcester City Council can pass a wage theft ordinance to help end the exploitation of workers in our City.”
Dave Minasian, Business Agent – Carpenters Local 336

(Read More)

EDITORIAL: WAGE THEFT SHOULD BE AT THE TOP OF LEGISLATURE’S AGENDA

Posted by National Alliance for Fair Contracting on

October 2, 2018

If you put in an honest day’s work, you should get an honest day’s pay. It’s that simple. The problem is, it’s not happening. Wage theft is occurring across the Commonwealth and dishonest employers are getting away with it, because Beacon Hill has continuously sided with business interests over hard-working families.

The numbers are shocking. About $700 million is stolen from workers every year, the majority of whom are low-income people of color. Only a fraction of those wages, less than 1 percent, is recovered by state authorities.

Often, wage theft happens when bad employers use subcontracting and outsourcing to dodge their basic responsibilities. These crimes are so pervasive, they’re overwhelming the capacity of our existing labor laws and enforcement mechanisms. They’re also a drain on our economy that siphons much-needed revenue, funds that could go toward improving roads, schools, transit, and other public infrastructure.

Cities and towns across the Commonwealth understand what’s at stake, and they’ve shown real leadership standing up for the public good and confronting these criminals head on.

Boston Mayor Marty Walsh led the charge in 2014, when he issued a powerful executive order protecting vulnerable workers from wage theft. At the time of the historic announcement, he said: “It’s illegal to deny fairly earned wages. This executive order empowers workers to demand what they have worked for. I’m committed to stopping violations and holding employers to the letter of the law.”

Since then, more municipalities, including Chelsea and Lynn, have also passed important anti-wage theft measures. And just this month, the Springfield City Council passed the strongest legislation yet. It ensures that businesses are in full compliance with wage and hour laws, including prevailing wage, before they receive any tax incentives from the city.

It’s a groundbreaking measure, and further proof that cities and towns are showing the way forward, but we still need a statewide solution that protects families from Norwood to New Bedford from this unlawful crime wave.

(Read More)

AG: Leominster construction firm ordered to pay nearly $840,000 for violating labor laws (MA)

Posted by National Alliance for Fair Contracting on

By Peter Jasinski
UPDATED: 10/31/2018 02:40:51 PM EDT

BOSTON — A Leominster construction company has been ordered to pay $837,341 in restitution and penalties for making illegal deductions from worker paychecks following the second investigation in less than three years of allegations the company was violating labor laws.

Massachusetts Attorney General Maura Healey announced Wednesday that Force Corporation and its managers, Juliano Fernandes, Anderson Dos Santos, and Claudio Cicero Da Silva have been issued two civil citations for failing to make timely payment of wages and failure to furnish payroll records to the AG’s office.

“Force Corporation and its managers cheated their construction workers out of hundreds of thousands of dollars,” said Healey in a written statement. “To build this case, our team documented the use of dozens of illegal tricks used by employers to steal from workers.”

This most recent investigation began after state officials received several complaints from the New England Regional Council of Carpenters.

The AG’s investigation revealed that Force Corporation has been regularly taking illegal deductions from employees weekly wages to pay for tools, safety equipment, and advances in what Healey referred to as a “textbook example of wage theft.”

The investigation also showed that Force unlawfully required employees to purchase their own tools through a company owned by Fernandes, one of Force’s managers.

…

The company was found in willful violation of federal labor laws and ordered to pay nearly $2.4 million back wages and damages to 478 employees in 2016 and $262,000 in fines for violating the federal Fair Labor Standards Act.
According to an investigation by the Wage and Hour Division of the U.S. Department of Labor, Force Corporation created a separate company, AB Construction Group of Framingham, as a way to provide Force with employers but classify them as independent contractors. This misclassification led to the company failing to pay employees overtime and keep accurate time and payroll records.

(Read More)

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Nearly $10 million in fines, penalties issued against Massachusetts employers accused of wage theft in 2018 (MA)

Posted by National Alliance for Fair Contracting on

Updated Sep 4; Posted Sep 4
By Kristin LaFratta

In Massachusetts, state officials found $9.6 million in restitution and penalties against businesses and employers who stole wages and exploited workers.

Attorney General Maura Healey released a 2018 Labor Day report this week that explores the findings of wage theft and other means of exploiting workers. Investigations were performed by the AG’s Fair Labor Division, or those who enforce wage laws and the fair bidding of construction projects.

The report revealed wage theft and labor violations occurred across industries, and many by contractors based outside of Massachusetts. In fiscal year 2018, Fair Labor conducted 247 “field visits” across Massachusetts to investigate unfair pay practices, which found both civil and criminal violations in various businesses.

Healey said her office chose to prioritize wage theft in the construction industry last fiscal year, which resulted in nearly $1.5 million in penalties and restitution, according to the report. In that time Fair Labor issued citations or other assessments against 61 different employers in the construction industry.

Methuen’s E.J. Paving Company, Florida-based contractor Southern Road and Bridge, LLC and J. Donlon & Sons Inc., which worked on a public works project in Medford, were among the “notable cases” listed in the report, all of which failed to pay workers properly in overtime pay or minimum wage.

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