Last month a panel of civic leaders, employers, attorneys and workers participated in a forum discussion titled “Wage Theft – Its Impact on the Local Economy and in the Community”.  The free event, hosted by Rice University’s Center for the Study of Women, Gender and Sexuality and by the Fey y Justica Worker’s Center (formerly the Houston Interfaith Worker Justice Center), was held on the 3rd floor of the Fondren Library at Rice University.  The diverse panel offered different perspectives on how wage theft impacts the local Houston economy, responsible businesses, social  programs, and the community as well as what can be done to eliminate this unethical practice.Simply put, wage theft is a practice in which employers cheat workers out of wages and benefits owed.  According to Houston’s Down With Wage Theft Campaign:“Wage theft depresses family income and as a consequence limits spending, lowers business sales, leaves taxes unpaid, public services undermined and economic growth diminished..." 

Last month some high school students attended a drywall installation clinic at Pasadena ISD’s L.P. Card Career and Technical Center led by a team from the Houston division of Marek Brothers Systems.  The team from Marek – which included Saied Alavi, Terry Holcombe, Dave McMillan, Buddy Britt, and Aurelio Flores – gave a classroom presentation to the two dozen students in Pasadena, Texas before leading them in a hands-on workshop where they shared their experience and crafts knowledge with the students.Saied Alavi began with an introduction, giving a little background information about Marek Brothers Systems.  He talked about the opportunities individuals coming out of high school can find at Marek, and the wage level and potential for career growth they could expect.  He explained how those who stay with the company have opportunities to move up to become a supervisor, a foreman, or even a superintendent – it is up to each individual how far he or she can move up the company career ladder.  He stated: “We don’t choose anyone by their height, by their size, by the color of their hair – it’s all based on your work.  It’s an open race.  Just as in track and field, when everybody lines up, it all depends on who runs the fastest.  In Real Life it is the same way.  

The state of Utah is fighting worker misclassification in the construction industry by scrutinizing employment records of companies who hire limited liability corporations, or LLCs.  Some dishonest contractors avoid paying their workers as employees by having each of them register as separate LLCs, claiming on paper at least that each worker is a company owner or independent contractor.Two years ago the state legislature created an enforcement council consisting of representatives from the state’s Labor Commission, Department of Commerce, Tax Commission, Department of Workforce Services and the Utah attorney general.  The council meets monthly to share information about construction companies in order to identify and stop worker misclassification, or payroll fraud.  The 2013 legislature has now authorized the continuation of the Worker Classification Coordinated Enforcement Council for the next three years.The Utah Division of Occupational and Professional Licensing (DOPL) is in charge of enforcing state licensing rules for construction companies.  This week, an article in the Salt Lake Tribune explained how these rules provide one way for contractors who commit payroll fraud to be caught.  The article states:“Changes in 2011 tightened definitions of employees and owners for licensed construction companies, set new reporting rules and provided for state auditing to verify financial responsibility.  Licensing disclosure rules give officials a crucial glimpse into how companies operate, as well as a squeeze point when their practices are out of bounds.”

Earlier this year, I sat down with Gregg Reyes, President and CEO of Reytec Construction Resources, Inc., to learn about his company and how it grew from a two-person contracting company operating out of a private home to the go-to company for specialty concrete work which it has become today.  Reytec is a provider of many types of concrete excavation and structural services, specializing in underground utility work, above ground paving and structures, and site preparation for both public and private projects.Reytec was started in 1997.  At that time, Reytec was a general contracting company consisting of only Reyes and his wife, operating out of their home, and hiring subcontractors to help complete projects.  While working on a restaurant project, Reyes met an older man who was running a concrete crew for one of the subcontractors Reyes had hired, and the two of them truly hit it off.