In an explosive investigation that drew the attention of many average Texans over the weekend, WFAA Television in Dallas/Fort Worth put a bright spotlight on the problem of worker misclassification. It’s a problem the Construction Citizen team has exposed for years and we greatly appreciate any time other media outlets take up the cause as well.This most recent outrage came to light after three men working as independent subcontractors underneath Thanksgiving Tower in Dallas died in a horrific accident. But, the companies involved have denied damages to their families. How can that be? From the story:Although they were little more than laborers, the State of Texas allows them to be called "independent contractors." That means they can get no workers compensation, and have no federal income tax or Social Security tax deducted from their paychecks.Three independent contractors' deaths at Thanksgiving Tower are the subject of legal action, but the families of the three men will receive no compensation for their deaths. Byron Harris has more on the "invisible workers."
After sailing to approval in the Texas House, a package of bonds worth about $3.1 billion in college campus construction might have a more uncertain future in the Texas Senate. The bill approved earlier this month in the House drew only a few “no” votes, mainly from lawmakers aligned with some groups that claim to be fiscally conservative. They argue it’s not the right time for the state to take on debt for this purpose But, leaders in higher education and business groups have made the case that there is an urgent need in Texas to fund more classroom space at colleges and universities as part of the state’s overall effort to maintain an educated and balanced workforce. As noted in the Austin Business Journal, “The construction requests of the state’s major university systems this legislative session correlate with the growth of high-demand jobs in the science, engineering and technology fields in Texas.”
April 23, 2015
Worker misclassification undercuts ethical employers, allows deadbeat dads to avoid child support, at times provides wages for illegal immigrants, and often contributes to hardworking laborors going underpaid, yet TX lawmakers are largely doing nothing about it.
April 08, 2015
Construction firms and labor advocates alike have now told state lawmakers they are in favor of a proposal under consideration at the Texas Capitol to create a searchable database of employers convicted of stealing the wages of their workers.Rep. Mary González, D-Clint, told the Texas House Business and Industry Committee during a public hearing that the current version of her legislation, House Bill 94, is the result of collaboration with business interests, workers’ rights advocates and Republican lawmakers who want to protect ethical employers and workers as well.Former Republican Rep. John Davis, R-Clear Lake, helped the El Paso-area Democrat craft this legislation along with Rep. Cecil Bell, R-Magnolia, and Rep. Jim Murphy, R-Houston."Wage theft is bad for good business," González said.
March 24, 2015
An incredible amount of candor will be required to address the question of how to deal with an estimated $1.5 billion worth of maintenance that so far has been deferred on state-owned buildings in Texas. That’s one of the main messages from Republicans and Democrats alike on the newly-created Texas Senate Select Committee on Government Facilities.All members of the panel, including its GOP chairman, said the needs are great and can only be truly met if lawmakers are working with solid facts and figures. Chairman Kevin Eltife, R-Tyler, said during the committee’s first meeting that if the heads of state agencies are crystal clear about their needs, they’ll be able to provide reliable intelligence that lawmakers can use to craft long-term solutions. In 2006, the estimate for deferred maintenance was about $400 million and it has ballooned in the years since.“We'd like to have a successful result for everybody," Eltife said. He also indicated that Lt. Gov. Dan Patrick has told him the committee’s work may be extended past the regular session of the Legislature so they can really dig down into problematic government facilities.
March 17, 2015
Walmart made waves recently with the announcement that the largest retailer in the world will boost pay for its employees and do more to create career paths within the company for those employees.It seems the same discussion that construction executives have been having for years about how to create a sustainable workforce is now being hashed out in Walmart’s boardroom as well.In an open letter, Walmart CEO Doug McMillon said the most immediate change will be raises for employees. Beyond that, he also said there will be chances for those workers to earn more based on their performance.
March 05, 2015
State funding for college campus construction projects has been described by many around Texas as “long overdue.” Leaders in the Texas legislature have agreed on the fundamentals in recent years but have been unable to come to a consensus on the details of a solution.
February 27, 2015
One major roadblock to creating a sustainable workforce in the Texas construction industry is rampant wage theft by unethical businesses in our state. Many of them are the very same companies that routinely misclassify their workers. As Construction Citizen has reported over the years, the refusal to pay people who do some of the hardest labor is not only commonplace, but in some cases has included alleged threats of violence.
February 11, 2015
A report from a bipartisan panel of Texas lawmakers says companies that pretend their employees are independent subcontractors are undermining free markets and encouraging illegal immigration, among other serious problems. The practice of worker misclassification, as Construction Citizen has reported many times, happens when an employer intentionally skirts the law by paying workers as independent subcontractors when they meet the legal definition of employees and should be paid as such.Preventing workers from being paid as employees denies them basic protections and costs taxpayers millions each year because employers are avoiding payroll taxes on that labor. Employers who follow the law are investing in a sustainable workforce, which is undermined by worker misclassification. Many of those ethical employers have urged lawmakers to do more to contain what they’ve called “a cancer” in the heart of the construction industry.So, the Texas House Business and Industry Committee this past year took an in-depth look at the issue, including testimony from construction industry leaders, labor advocates and others who are united in combating misclassification.
January 23, 2015
Educators will tell you there was a time, not all that long ago, when folks in higher education had very little interest in working collaboratively to address the workforce needs of businesses in their communities. Those days are over. The needs are so great that there is now a recognition that unprecedented teamwork is necessary for the good of businesses and their potential employees.
January 13, 2015
