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Senator Brown proposes anti-wage theft legislation
/0 Comentarios/en News /por IKORCCCINCINNATI, OH – In the wake of Cincinnati becoming the first Ohio city to pass a wage theft ordinance, one of Ohio’s senators is trying to bring the momentum nationwide.
U.S. Sen. Sherrod Brown introduced the Wage Theft Prevention and Wage Recovery Act Wednesday. The legislation would give workers the right to receive full compensation for all of the work they perform, as well as the right to receive regular paystubs and final paychecks in a timely manner.
It would also provide workers with tools to recover stolen wages and make assistance available to enhance the enforcement of and compliance with wage and hour laws.
The bill was co-sponsored by U.S. Sen. Patty Murray, D-Wash.; U.S. Rep. Rosa DeLauro, D-Conn., introduced companion legislation in the House of Representatives.
Wage theft occurs when employers refuse to pay workers money that they are owed by withholding pay, tips or overtime.
“When bosses don’t pay their workers what they’re owed, it robs them of money they earned for their hard work and hurts businesses that play by the rules,” Brown said in a news release.
“We must create a system where employers who steal wages are held accountable and workers have the tools they need to recover their wages when they’ve been cheated.”
A 2009 study by the National Employment Law Project (NELP) of nearly 4,500 low-wage workers found that more than 60 percent had been shorted by their employer each week, equivalent to $2,634 per year in unpaid wages. Analysts applying this study to Cincinnati estimate that low-wage workers here lose $52 million per year to wage theft.
Low-wage and immigrant workers are victims of wage theft when they are paid less than the minimum wage, are shorted hours, forced to work off the clock, are not paid overtime or not paid at all. These are pervasive practices across many industries.
Despite complaints about wage theft, Ohio has cut the number of state wage investigators from 15 to five since 2008. The closest investigator to Hamilton County is located in Dayton, Ohio.
In early February, Cincinnati became the first city in Ohio to pass an ordinance to improve enforcement of existing wage laws.
City Council voted 7-2 for the ordinance. Under the measure, if the city or another agency determines a company has committed wage theft, city officials would be able to have the money returned and the company would be barred from doing business with the city.
During a news conference call Wednesday, Brown was joined by Brennan Grayson, director of the Interfaith Workers Center in Cincinnati, who helped organize support for Cincinnati’s recently-passed wage theft ordinance.
“Sen. Brown’s bill is the type of change we need to begin making things right, to begin restoring dignity to wage earners,” Grayson said.
Under the Ohio Democrat’s proposal, workers would recoup the full compensation that employers have taken from them, create a civil penalty of $2,000 when employers violate minimum wage and overtime protections and increase the time that employees have to bring a claim for owed wages.
The bill also would make it easier for employees to take collective action to recover their stolen wages and remove the current requirement that employees affirmatively “opt-in” to engage in a collective action under the Fair Labor Standards Act.
Last November, Brown introduced legislation to take action against employers that misclassify their workers to cheat them out of wages, benefits, and important workplace protections – one of the practices that contributes to wage theft. He has also introduced bills to raise the minimum wage, expand paid sick leave to all workers and support workers’ right to bargain with employers.
Source: Cincinnati.com
ICRA in the news!
/0 Comentarios/en News /por IKORCCThe Infection Control Risk Assessment (ICRA) program was recently featured on PortageLife.com for its efforts to keep hospitals safe and infection-free during construction and renovation.
Workers Endeavor to Keep Hospital Safe with ICRA Training
Written by Kyle Hovanec
For those involved in construction or the upkeep of a hospital, taking the necessary steps to maintain a clean and safe environment during construction and maintenance projects is an essential precaution needed to keep people safe. Following these steps goes beyond simple exercises such as washing hands, it requires the knowledge and training taught by professionals to make sure each project is safe. ICRA involves methods and strategies taught by the Indiana/Kentucky/Ohio Regional Council of Carpenters (IKORCC) to teach and prepare workers for working safely and efficiently in healthcare environments by teaching them methods designed to understand infection and contamination risks, specialized procedures, proper job site conduct and dress as well as proper communication.
Read the full article!
Do you want to ensure infection control best practices are used by construction workers in upcoming renovation or construction projects at your healthcare facility? Contact Brad Murphy at 317.605.1386 or bmurphy@ikorcc.com for a list of contractors in your area that use ICRA-trained staff.
Construction ICRA Best Practices is an innovative program that provides patient-focused training for Carpenters and other trades working in hospitals, medical facilities or other occupied spaces. This set of best practices helps prevent the spread of disease and infection during construction at healthcare facilities. ICRA instructors also offer training opportunities to healthcare facility staff.
Residential construction industry built on ‘payroll fraud’ model
/0 Comentarios/en News /por IKORCCMINNEAPOLIS, Minn. – Jose Ramirez had never heard the term “wage theft,” but he knew he was being cheated when a roofing subcontractor refused to pay him.
“We finished a couple houses, roofing houses, and we tried to collect the money and the guy said, ‘I haven’t gotten paid by our boss,'” he recalls. “That was a big project. I mean, we were shingling one house, putting back shingles, moving to the next one, and eventually there was two of them where I did not get paid. I told the guy, ‘That’s it. I can’t keep working until you pay me those two houses.'”
“So they stop answering the phone, you start chasing them for the money, and then suddenly, they disappear . . . and there you go – you got two weeks without pay . . . So you have to figure out how you’re going to support your family.”
Today, Ramirez is one of the lucky ones. After seeing a billboard advertising the carpenters union, he called and signed up. He spent several years with a reputable contractor and just recently became an instructor in the training center operated by the North Central States Regional Council of Carpenters.
Looking back, Ramirez realizes that not getting paid to roof two houses was just the tip of the iceberg. He was being cheated every day on the job, forced to work long hours without overtime pay. Often, he never got a paystub to track whether or not he was being paid for all the hours he worked.
Fortunately, he did not get injured on the job. Even though construction employers are required to carry workers’ compensation insurance, untold numbers of injured workers have been fired, left to try to get medical help on their own.
“Back in the day, I didn’t know that you had those rights,” said Ramirez. “I have friends who still work the same way. Depending on the situation that they have, some people don’t think they have a choice but to work that way. People have to make a living.”
Tens of thousands of construction workers are victims of wage theft in Minnesota ever year, but no one knows the exact number. Some of the workers are undocumented and afraid to come forward. Many, regardless of their background or citizenship status, simply don’t know that they are being cheated.
Minnesota Department of Labor & Industry: An Evaluation of the Contractor Registration Pilot Project and the Misclassification of Workers in the Construction Industry
Read More
Source: Workday Minnesota
Tennessee contractors avoid workers’ comp to win bids
/0 Comentarios/en News /por IKORCCNASHVILLE, Tenn. – The amount of growth in downtown Nashville requires a lot of labor, but not every worker is equally protected in case of injury.
The practice of winning low bids by avoiding workers’ compensation payments is called worker misclassification.
The Channel 4 I-Team has found the same thing uncovered nearly five years ago at the Music City Center is now happening right across the street.
WSMV Channel 4
In 2011, a drywall subcontractor with a large workforce was failing to deduct taxes of any kind or pay workers’ compensation or overtime.
Some contractors use worker misclassification to win competitive bids. They can undercut a rival by 20 percent or more by not paying into insurance pools.
“Everybody is hurt by employee misclassification, all of us,” said Scott Yarbrough with Workers Compensation Compliance. “If an employee is hurt, they don’t have a workers’ compensation policy to fall back on. The hospitals have to treat them as a charity case most of the time.”
When the I-Team investigated the Music City Center, the state had never audited a job site for compliance. They do now.
At an apartment complex in Bellevue, a subcontractor named Pablo Delgado was fined more than $87,000 for understating his payroll.
At another Bellevue complex, Aguilar Carpentry was caught misclassifying its workforce and was hit with almost $73,000 in fines.
Investigators also levied a $39,000 fine on a Vanderbilt dormitory project.
Government jobs aren’t immune. A Metro-funded project in north Nashville led to a $69,000 fine for a roofing subcontractor.
A worker at the new Westin Hotel across from the Music City Center spoke to the I-Team. He asked not to be identified.
“Yes, it’s very common. They’re still doing it,” the worker’s translator said.
The man showed us his paychecks with no tax deductions whatsoever. There was also no overtime pay, even though he works 50 hours a week.
The man said it’s done everywhere.
“He said that 95 percent of the jobs he has done, they don’t take taxes off the cash and they don’t pay time and a half overtime,” the translator said.
“It’s a huge risk for families,” Yarbrough said. “When an uninsured employee gets hurt, it starts an economic death spiral for them. They can’t pay their hospital bills. They lose their car, can’t get to work. They lose their job, lose your house.”
Many fines go unpaid. The offender has yet to pay a dime of the $87,000 fine mentioned early. Only $5,000 of the nearly $73,000 fine against Aguilar Carpentry has been collected. The subcontractor on the Vanderbilt dorm has paid less than half of what he owes. The roofer from the Metro-funded project has managed just $3,000 of the $69,000 he owes the state.
Offenders are given 24 months to pay.
“The main thing we want to see is people coming back into compliance,” Yarbrough said. “We don’t necessarily want to run them out of business. We want to give them an opportunity to pay over time.” The state just started cracking down on this in 2013.
Collections have increased from $85,000 statewide to $132,000 last year. As of Wednesday, there is still $325,000 owed by violators.
Experts said in the construction field alone, misclassification is shorting the state Medicare pool somewhere between $7 million and $42 million.
Source: WSMV News 4, Nashville, Tenn.
Manchester drywaller jailed for under-the-table payroll scheme
/0 Comentarios/en News /por IKORCCMANCHESTER, N.H. – A city dry-wall contractor was sentenced to 18 months in federal prison and ordered to pay the Internal Revenue Service more than $780,000 for his role in an under-the-table payroll scheme.
Cruz E. Galvan, 39, who operated Four Star Drywall, was ordered to pay the IRS restitution totalling $786,553. Authorities said he had paid $100,000 of that amount several weeks before being sentenced Tuesday in U.S. District Court.
According to U.S. Attorney Emily Gray Rice, Galvan pleaded guilty to one count of federal employment tax evasion, admitting to a scheme to dodge payment of federal employment taxes on wages he paid to his employees.
During his plea hearing, Galvan admitted that from April 2010 until December 2012 he paid employees with vouchers instead of with checks. The employees were then instructed to present the vouchers to a local check-cashing business to which Galvan had previously provided funds with instructions to pay the vouchers in cash.
He acknowledged he did not report the wages he paid to the IRS, evading federal income tax withholding and Social Security, Medicare and federal unemployment taxes.
Immigration proceedings are underway to deport Galvan, who authorities say is in the country illegally, after he serves his sentence.
City police, the IRS, the U.S. Department of Homeland Security and the U.S. Department of Labor, Office of Inspector General, investigated the case, which was prosecuted by Assistant U.S. Attorney Bill Morse.
Source: Union Leader