“Adding 100 investigators to our team is an important step in the right direction,” said Acting Wage and Hour Administrator Jessica Looman. “We anticipate significantly more hiring activity later in fiscal year 2022. While appropriations will determine our course of action, we are optimistic we will be able to bring new talented professionals onboard to expand our diverse team.”
In fiscal year 2021, the Wage and Hour Division collected $230 million in wages owed to 190,000 workers. Division representatives also conducted 4,700 outreach events to educate employers and workers alike about their workplace rights and responsibilities.
“By withdrawing the Independent Contractor Rule, we will help preserve essential worker rights and stop the erosion of worker protections that would have occurred had the rule gone into effect,” said U.S. Secretary of Labor Marty Walsh. “Legitimate business owners play an important role in our economy but, too often, workers lose important wage and related protections when employers misclassify them as independent contractors. We remain committed to ensuring that employees are recognized clearly and correctly when they are, in fact, employees so that they receive the protections the Fair Labor Standards Act provides.”
The FLSA includes provisions that require covered employers to pay employees at least the federal minimum wage for every hour they work and overtime compensation at not less than one-and-one-half times their regular rate of pay for every hour they work over 40 in a workweek. FLSA protections do not apply to independent contractors.
In addition to maintaining the scope of workers covered by FLSA wage and hour protections, the department anticipates that the independent contractor rule’s withdrawal will avoid a reduction in workers’ access to employer-provided fringe benefits such as health insurance and retirement plans. The withdrawal will also avoid a reduction in other benefits such as unemployment insurance and workers compensation coverage.
For more information about the FLSA or other laws it enforces, visit the Wage and Hour Division, or call toll-free 1-866-4US-WAGE.
Union Apprenticeships Protected as Part of a Federal Victory...We have good news regarding the Industry Recognized Apprenticeship Program issue in front of the Department of Labor: The construction industry has been carved out of this new program!
The entire UBC family (members, contractors, staff, instructors, etc) came together over the last several months to argue for a construction carve-out from this new program. The UBC position is, while we are happy to share our expertise with other industries, and while we recognize that other industries may want to develop apprenticeship programs that differ in form and rigor from our programs, the construction industry has effective apprenticeship programs already in place - funded by the private sector - which are doing a great job in meeting the needs of the industry.
General President McCarron took the position while serving on President Trump's Task Force on Apprenticeship, which created recommendations to create IRAPs. It is in no small part due to President McCarron's leadership and willingness to engage directly with the Trump administration that we have prevailed in this argument.
Why this matters…Industry Recognized Apprenticeship Programs (IRAPs) that included the construction industry would've created a less stringent oversight of Registered Apprenticeship Programs. It would’ve eroded the success that our programs currently achieve, and it would've driven our already high standards down to a state of mediocrity.
Not in the clear yet…While we’re happy with this news, expect a lawsuit to be filed by the Associated Builders & Contractors (ABC) against the Department of Labor over the construction carve-out.
Here’s the full text of the ruling from the Trump Administration: https://s3.amazonaws.com/public-inspection.federalregister.gov/2020-03605.pdf
UBC Statement on New Secretary of Labor...The United Brotherhood of Carpenters and Joiners of America (UBC), representing over 500,000 members, announced their support of President Biden’s selection of Boston Mayor Marty Walsh as Secretary of Labor. It’s been decades since a union member was appointed to run the Labor Department and we’re pleased that such a talented and experienced union brother has been chosen to take on this responsibility in the Biden Administration. Choosing Marty Walsh to lead the Labor Department sends a clear signal to working men and women that this administration will make sure our jobsites are safe, our pay is fair and our hard work is respected.
The USDOL is on Track to Limit the Number of Workers Eligible for Minimum Wage and Overtime Under the FLSA...They have proposed a rule that will make it easier for employers to classify employees as independent contractors. It's a startling document, because it ignores the intent of the FLSA and court precedent. The intent is not so much to clarify the Act as it is to favor the use of independent contractors. Here is a link to the rule: https://www.federalregister.gov/documents/2020/09/25/2020-21018/independent-contractor-status-under-the-fair-labor-standards-act. The UBC and affiliates are filing substantive comments opposing the rule. We need our state attorneys general friends to do the same. Please contact Democratic attorneys general in your states and urge them to file comments.
Tennessee Contractor Violated Child Labor Laws Related to Fatality...A 16-year-old boy doing roof construction atop a hotel work site more than 11 stories above the ground climbed over a barrier at the roof line and attempted to jump onto a power-driven hoisting device next to the building. The teen missed the platform, slipped through a gap between the scaffolding and the building and fell about 160 feet to his death.
A U.S. Department of Labor Wage and Hour Division investigation into the incident found the teenager’s employer, Stover and Sons Contractors Inc. – a Madison construction contractor – violated two hazardous occupation orders of the child labor provisions of the Fair Labor Standards Act. The orders ban employers from allowing minors under age 18 to perform roofing activities or to operate or ride on a power-driven hoisting apparatus. Further investigation determined the employer also violated child labor laws when it allowed the boy to work more than 8 hours a day and more than 40 hours per week when he was 15 years of age.
The division assessed Stover and Sons a $122,364 civil penalty under the Child Labor Enhanced Penalty Program. The program permits the division to assess penalties of up to $59,413 for each child labor violation related to the death or serious injury of a worker under age 18 for violations that occurred on or before Jan. 15, 2021.
“Every worker’s death is a tragedy, yet the loss of a teenager so needlessly is especially hard to understand. Child labor laws were enacted to protect children from being put at risk in truly dangerous work conditions,” said Wage and Hour Division Acting District Director Kenneth Stripling, in Nashville, Tennessee. “The Wage and Hour Division is determined to enforce child labor laws to keep young workers safe, and to hold employers accountable for their failures to comply with the law.”
An investigation by the Tennessee Department of Labor’s Occupational Safety and Health Administration, which has jurisdiction for the case’s workplace safety portion, led the agency to issue citations to the employer. Stover and Sons is currently contesting the penalties.
In addition to the child labor violations, the Wage and Hour Division also found the employer failed to pay overtime to employees when they worked more than 40 hours in a workweek, another violation of the FLSA. The employer paid $38,462 in back wages to 55 workers to resolve this issue.
Stover and Sons Contracting Inc. performs exterior stucco and insulation finishes on buildings in Nashville and the surrounding area. The employer subcontracted work on the hotel project to Cortes Plastering, who provided the workers that were overseen by Stover and Sons.
For more information about the FLSA and other laws enforced by the division, contact its toll-free helpline at 866-4US-WAGE (487-9243). Learn more about the Wage and Hour Division, including a search tool to use if you think you may be owed back wages collected by the division.
Read this news release En Español.