Back in September 2016, we told you about the widespread misclassification of employees as independent contractors, causing serious and ongoing problems. There is another type of worker misclassification in the construction industry to be aware of that is equally problematic. The much-less-talked-about scenario of trade misclassification involves inaccurately designating the trade of construction workers so they are not appropriately compensated for their work.
For public works projects, each trade has a prevailing wage associated with it; a prevailing wage is a set hourly wage, including benefits and overtime, which must be honored during government contracted projects. Certain trades are paid more than others. For example, a skilled demolition laborer in Queens County, New York is paid $25.62 per hour. A mason working in that same county should be paid a prevailing wage of $55.38 per hour. Frequently, wage compliance investigations uncover tradesmen being paid under the wrong designation. Meaning, the investigator encounters an employee working on the job as a mason; they see him pouring cement, finishing concrete floors, and applying sealants to protect concrete. When the the certified payroll records are inspected, it is revealed that the employee doing mason work is being paid as a skilled demolition labor. Thus, his hourly pay rate is roughly $30 less than what he should be paid for the work he is doing.
As for the employers; a U.S. Department of Labor Blog posits that “misclassification is not being done out of ignorance of the law; rather, contractors see their peers doing it and prospering without consequences so they follow suit.” This all-too-common scenario is stealing money from the pockets of hardworking construction tradesmen; perhaps they don’t know they are being ripped off, or perhaps they simply don’t know what to do about it. The trickle-down aspects of this wage theft directly affects individuals, families, and tax revenues, meanwhile undermining the economy as a whole.
As part of their efforts to address this issue, the Labor Department has created a user-friendly webpage where workers, employers and government agencies can find information and resources: dol.gov/misclassification. “This new resource offers information about how misclassification affects pay, Unemployment Insurance, safety and health protections, retirement and health benefits, and taxes. Help us address this problem by learning more.”
We at Rochester Research Associates, LLC provide independent compliance services to city, state, and federal agencies, developers, architectural firms, and general contractors. Our Compliance Services Include:
- State and Federal Wage Compliance
- MWBE and EEO Monitoring and Reporting
- Workforce Referrals and Community Outreach
- Field Inspections and Onsite Compliance Monitoring
- MWBE Outreach Events and Workshops/Pre-Bid Meetings
- Pre-Job Meetings with Contractors/Subcontractors
- Technical Assistance and Support Services
Contact us today to discuss how we can help you with your compliance needs by clicking this link, or by calling us at (585) 471-6056. We look forward to hearing from you.
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