Tuesday, August 24, 2010

California car wash owners face jail time, must pay $1.25 million in restitution for wage theft

Two owners of four Los Angeles car wash businesses were each sentenced to one year in jail and ordered to pay restitution of an estimated $1.25 million dollars in unpaid wages to car wash workers in a landmark plea agreement to resolve multiple criminal counts of repeatedly and willfully stealing wages and violating labor laws, the Los Angeles City Attorney’s office announced. Car wash owners Benny and Nissan Pirian each entered a plea of no contest to six criminal counts, including conspiracy, grand theft, and several labor code violations; they were sentenced to 365 days in jail and four years of probation. The Pirians and the corporations through which they operated the car washes were also ordered to pay full restitution to the victims pursuant to a future hearing.

 

The criminal complaint alleged that for years, workers at the Pirians’ car washes were paid a flat rate of $35 to $40 per day, far below the federal and state minimum wages, with some working for tips alone. The complaint further alleged that none of the workers were compensated for their overtime and during the day, the workers — who often labored in extreme heat — were either discouraged from taking rest breaks or denied the right altogether. The complaint also alleged that the defendants failed to provide clean drinking water, safety gear, or uniforms, forcing employees to pay money out of their substandard wages for bottled water and company t-shirts….

 

http://www.employmentlawdaily.com/index.php/news/california-car-wash-owners-face-jail-time-must-pay-1-25-million-in-restitution-for-wage-theft/

 

Chicago-area warehouse workers face temporay jobs and poverty wages, new U of I Chicago study shows

A new report by a research group at the University of Illinois at Chicago found that 63% of warehouse workers in the southwest suburbs of Chicago were temps making poverty-level wages.

Workers from over 150 different warehouses were surveyed for the study Bad Jobs in Goods Movement: Warehouse Work in Will County, which found low wages, few benefits and high rates of injuries and discrimination.

The study focused on Will County, which has one of the largest concentrations of warehouses in the hemisphere.

"This is the first large scale study of warehouse workers in the country, and allows us to take a look into warehouse working conditions from the perspective of the workers," according to Beth Gutelius, a Research Assistant at the Center for Urban Economic Development at the University of Illinois at Chicago.

Transportation, Warehousing and Logistics accounts for about 10% of the GDP and is one of the fastest growing industries in the country.

"Almost everything we use, wear and eat has been touched by the hands of someone in a warehouse or distribution center," said Cindy Marble, a warehouse worker who along with 70 other temps was fired in retaliation for filing legal charges at the Bissell vacuum cleaner warehouse in Elwood, IL. ….

http://www.examiner.com/political-buzz-in-chicago/chicago-area-warehouse-workers-face-temporay-jobs-and-poverty-wages-new-u-of-i-chicago-study-shows

 

 

Friday, August 20, 2010

DailyBreeze: Car-wash owning brothers get prison time, must pay wages in 'landmark' plea deal

Two brothers who own four Los Angeles car washes were each sentenced to a year in prison and ordered to pay $1.25 million in unpaid wages to 54 workers, in what the City Attorney's Office on Monday called a "landmark" plea deal.

"What occurred at the car washes doesn't fit the technical definition of `indentured servitude,' but people worked for years without receiving minimum wage or overtime; they worked in hazardous conditions where they were regularly exposed to chemicals and not provided with safety equipment to prevent injury; they weren't provided with drinking water. ... It was really a sweatshop," said Deputy City Attorney Julia Figueira-McDonough, who helped prosecute the case.

Benny and Nissan Pirian each pleaded no contest Friday to a half-dozen criminal counts, including conspiracy and grand theft, and several Labor Code violations, she said.

They were each sentenced to 365 days in jail and four years of probation, and ordered to pay restitution.

The brothers own Celebrity Car Wash and Hollywood Car Wash - both in Hollywood - as well as Five Star Car Wash in …

http://robocaster.com/dailybreeze/podcast-episode-home/news-ci_15798091/car-wash-owning-brothers-get-prison-time-must-pay-wages-in-landmark-plea-deal.aspx

 

Tuesday, August 17, 2010

DesMoinesRegister: Meaningful fines make a difference

Iowa Administrative Law Judge Jeffrey Farrell's decision to dramatically reduce penalties against Henry's Turkey Service, "Judge Cuts State's Proposed Atalissa Fine by 85 Percent," Aug. 5, fails to punish a firm for intentionally and flagrantly violating labor laws.

Henry's Turkey Service took advantage of mentally retarded men. The service recruited mentally retarded men (through their families) in Texas and shipped them to Iowa to work in a turkey processing plant. The men were housed in substandard conditions and then had money deducted for food, lodging and "kind care." The men got $65 a month after deductions. Henry's Turkey Service stole wages from vulnerable men. How low can one get?

The judge accepted that there were 2,911 minimum wage violations over a two-year period, although the Iowa Workforce Development argued there were more than 9,000. Regardless of the exact number, clearly there was a pattern of abuse. The best way to send a clear message against abuse and wage theft is to issue meaningful fines. Cutting the fine from $1,164,400 to only $174,660 sends the ….

http://www.desmoinesregister.com/article/20100811/OPINION04/8110340/Meaningful-fines-make-a-difference

 

 

Owners of LA car washes sentenced to prison for wage violations

Two brothers who own four Los Angeles car washes were each sentenced to a year in prison and ordered to pay $1.25 million in unpaid wages to 54 workers, in what the City Attorney's Office today called a "landmark'' plea deal.

"What occurred at the car washes doesn't fit the technical definition of 'indentured servitude,' but people worked for years without receiving minimum wage or overtime; they worked in hazardous conditions where they were regularly exposed to chemicals and not provided with safety equipment to prevent injury; they weren't provided with drinking water ... It was really a sweatshop,'' said Deputy City Attorney Julia Figueira-McDonough who helped prosecute the case.

Benny and Nissan Pirian each pleaded no contest Friday to a half-dozen criminal counts, including conspiracy and grand theft, and several labor code violations.

They were each sentenced to 365 days in jail and four years of probation, and ordered to pay restitution.

The brothers own Celebrity Car Wash and Hollywood Car Wash -- both in Hollywood -- as well as Five Star Car Wash in Northridge and Vermont Hand Wash in Los Feliz.

According to the criminal complaint, their workers received a flat rate of $35 to $40 a day -- far below the federal and state minimum wages -- and no overtime. A few workers were paid only with tips, according to city prosecutors.

The workers, who often labor in extreme heat, said …

http://www.scpr.org/news/2010/08/16/owners-la-car-washes-sentenced-prison-wage-violati/

 

 

ACSBlog: Nike Just Does It

Every year, hundreds of thousands of apparel workers around the world are cheated of legally-earned income when their employers fail to pay mandatory severance benefits. This pernicious form of wage theft, which costs workers the equivalent of at least several months' wages, has afflicted workers sewing clothes for just about every major apparel brand. However, since it is the brands' contract factories that directly employ the workers, the brands insist it's not their problem to fix. Factories close, bosses skip town, the brands wash their hands of the matter - and workers are left high and dry.

On July 21, Nike signed an accord under which it agreed, in effect, to accept financial responsibility for severance owed to workers by two contract factories (workers with the accord pictured left). This sharp break with business as usual by the world's leading sports apparel brand - the result of intense pressure from student activists and the company's university business partners - has significant implications for the global apparel industry.

Outsourcing and Accountability…

http://www.acslaw.org/node/16678

 

 

Wednesday, August 11, 2010

Newstips: Feds enter local wage theft case

The U.S. Department of Labor will file a motion tomorrow in the bankruptcy case of a Streamwood plastic factory, charging that owners pocketed deductions for health insurance, the Chicago Workers Collaborative reports.

Labor department attorneys will move that the funds be considered an administrative cost – giving former employees of Duraco Products priority over other unsecured creditors in case money is recovered from company owners Michael and Kevin Lynch, said Leone Jose Bicchieri of CWC.

Following the hearing tomorrow morning, former Duraco workers and their attorneys will discuss the situation at the Federal Building, 219 S. Dearborn (Wednesday, August 11, 10:30 a.m.)

In February Newstips reported that Bankruptcy Court Judge Eugene R. Wedoff ordered Duraco into Chapter 7 bankruptcy, shutting down the lawn furniture manufacturer, when he learned the company had shown him false payroll reports in order to cover up wage theft.

In March former employees filed a class action lawsuit suit…

http://communitymediaworkshop.org/newstips/?p=2150

 

DesMoinesRegister: Meaningful fines make a difference

“Iowa Administrative Law Judge Jeffrey Farrell's decision to dramatically reduce penalties against Henry's Turkey Service, "Judge Cuts State's Proposed Atalissa Fine by 85 Percent," Aug. 5, fails to punish a firm for intentionally and flagrantly violating labor laws.

 

Henry's Turkey Service took advantage of mentally retarded men. The service recruited mentally retarded men (through their families) in Texas and shipped them to Iowa to work in a turkey processing plant. The men were housed in substandard conditions and then had money deducted for food, lodging and "kind care." The men got $65 a month after deductions. Henry's Turkey Service stole wages from vulnerable men. How low can one get?

 

The judge accepted that there were 2,911 minimum wage violations over a two-year period, although the Iowa Workforce Development argued there were more than 9,000. Regardless of the exact number, clearly there was a pattern of abuse. The best way to send a clear message against abuse and wage theft is to issue meaningful fines. Cutting the fine from $1,164,400 to only $174,660 sends the wrong message.

 

Meaningful fines deter wage theft. This judge undermined deterrence.”

 

- Kim Bobo, executive director, Interfaith Worker Justice, Chicago, Ill.

http://www.desmoinesregister.com/article/20100811/OPINION04/8110340/-1/GETPUBLISHED03scripts/Meaningful-fines-make-a-difference

 

Monday, August 9, 2010

NYT: In Superman's Hometown, a Labor Dispute Over Health

Union workers at the nation’s only uranium conversion plant, in Metropolis, Ill., have erected 42 crosses nearby in memory of workers who died of cancer. Twenty-seven smaller crosses symbolize workers who have survived the disease.

 

The memorial is a fitting backdrop for the contentious labor dispute that has shaken Metropolis — the self-proclaimed hometown of Superman, which sits on the Ohio River at the southern edge of Illinois. Many workers believe that the plant contributed to their fellow employees’ illnesses, which is a central reason the union is refusing to accept the plant operator’s plan to reduce pensions for newly hired workers and health benefits for retirees.

 

On June 28, Honeywell, the plant operator, locked out its 220 union employees after negotiations stalled, accusing the union of refusing to give the company 24 hours’ notice of a strike. The union has picketed ever since.

 

“We deal with hydrofluoric acid,” said Darrell Lillie, president of United Steelworkers Local 7-669, which represents the union workers. “We make fluorine. This is bad stuff. The least we feel like we could have is good medical benefits when we retire.”

 

http://www.nytimes.com/2010/08/09/us/09metropolis.html?hp

 

Underground in the Ironbound

ABRAHAM LINCOLN abhorred slavery not only from the moral point of view — revulsion at holding another human being in involuntary servitude — but also because it violated the fundamental American value that people must be paid for their labor.

 

Unfortunately, 145 years after Lincoln’s death, this fundamental American value is not extended to day laborers in Newark. Day laborers are all too often robbed of their wages, taking a serious toll on not just these workers and their families, but on all workers and law-abiding employers in New Jersey.

 

In a recent report entitled "Ironbound Underground: Wage Theft and Workplace Violations Among Day Laborers in Newark’s East Ward," students at the Center for Social Justice at Seton Hall University Law School showed a level of employer wage theft well above the national average. Ninety-six percent of day laborers in Newark’s Ironbound section had experienced some significant form of wage theft: some 88 percent reported not being paid overtime, 77 percent reported being paid below agreed-upon rates, and more than…

 

http://www.northjersey.com/news/opinions/more_columnists/100209739_Ordeal_of_day_laborers_in_Ironbound.html

 

Report: Newark day laborers regularly cheated by employers

An honest day’s pay for an honest day’s work. An American value. Except when those cheated out of pay are the current scapegoats for many, if not all, of the nation’s problems. Immigrant workers.

“In a sense, it’s a real test of whether we mean what we say when we start mouthing platitudes,” says Bryan Lonegan, a faculty member at Seton Hall Law School in Newark. He and his students recently issued a report showing immigrant day laborers gathering in Newark every morning are regularly cheated by employers.

“Informal day labor markets implicate serious legal issues when employers fail to adhere to wage and overtime laws and do no follow safety standards, which apply to all New Jersey workers regardless of immigration status,” warns the report, entitled “Ironbound Underground: Wage Theft and Workplace Violations Among Day Laborers in Newark’s East Ward.”…

http://blog.nj.com/njv_bob_braun/2010/08/seton_hall_newark_day_laborers.html

 

Thursday, August 5, 2010

DesMoinesRegister: Judge cuts state's proposed Atalissa fine by 85 percent

Henry's Turkey Service must pay $174,660 for failing to pay the minimum wage to its mentally retarded workers, an administrative law judge has ruled.

The penalty is 15 percent of the $1,164,400 fine that had been proposed by Iowa Workforce Development, the agency that enforces state labor laws.

Iowa Administrative Law Judge Jeffrey Farrell cited several reasons for reducing the fine. For example, he cut the fine by $72,775 after concluding that Henry's, which was accused of housing its workers in deplorable and ,unsafe conditions inside an Atalissa bunkhouse, acted in good faith and complied with the law for the first 40 years it did business.

Either side can appeal…

http://www.desmoinesregister.com/article/20100805/NEWS10/8050353/-1/GETPUBLISHED03SCRIPTS/Judge-cuts-state-s-proposed-Atalissa-fine-by-85-percent

 

Wednesday, August 4, 2010

Sandwich Maker Bimmy's Sued for Labor Violations, According to Workers' Legal Team

Bimmy's, one of New York City's largest wholesalers of "premium" sandwiches, wraps, salads, and other pre-packaged food items, allegedly violated federal and state labor laws, according to a lawsuit filed today in Brooklyn federal court.

Bimmy's and its owner, Elliot Fread, are accused of failing to pay the workers who prepare its sandwiches in factories in New York City the applicable minimum wage rate for all hours worked, overtime for the hours that they work over 40 in a workweek, spread of hours pay on days on which they work more than 10 hours, and statutory compensation for the cost of maintaining required uniforms. The practices allegedly violate the federal Fair Labor Standards Act (FLSA) and the New York Labor Law (NYLL).

The workers are represented by attorneys from Outten & Golden LLP and Make the Road New York, Inc. The legal team will seek to have the lawsuit certified as a class action to recover unpaid wages and other damages for hourly workers employed by the defendants between June 3, 2007 and the date of final judgment in this matter.

The plaintiffs are Aurelio Ramalez and …

http://www.prnewswire.com/news-releases/sandwich-maker-bimmys-sued-for-labor-violations-according-to-workers-legal-team-99875064.html

 

 

Tuesday, August 3, 2010

elbigeasyamigoblogger: LOS INVISIBLES: Latino Immigrants in the Post-Katrina Reconstruction of New Orleans

Year five of the post-Katrina reconstruction of New Orleans is upon us, and the dirtiest little secret of the recovery is that our rapid progress owes a tremendous debt to the Latino immigrants who have labored hard to rebuild the Big Easy. While the BP oil spill disaster is our latest reminder that we are a new millennium epicenter for man made and natural tragedies, the many setbacks that this recovering mini-metropolis has experienced include a nationally high murder rate and a corrupt police department under federal investigation.

Nonetheless, the city and its resilient people continue forward, and most people I speak to recognize that the Latino work force has been vital in transforming New Orleans into a livable city and a functioning tourist destination, still open for business even with the toxic oil that looms in our Mississippi waterways and the Gulf. However, the story of Latino immigrants and the reconstruction remains conspicuously absent when the post-storm narratives are accounted in the local and national press.

It’s as if the immigrants are living in a parallel universe as invisible inhabitants, laboring in the shadows of a science fiction reality. For years, los invisibles have been physically visible everywhere on rooftops and numerous construction sites, but they are ubiquitous and nowhere at the same time. The undocumented status of many has transformed them into a transparent people that are not recognized as fully human. This condition makes their suffering an obscure painful story that most prefer to ignore because foreigners are classified as aliens in this country, extraterrestrials from the Planet Other with a marginalized existence.

I recently interviewed three young day laborers, and each man shared stories of being cheated by ruthless contractors and local businesses. One worker with a wife and three children had put in two weeks at a major hotel in the French Quarter, but …

http://elbigeasyamigoblogger.blogspot.com/2010/07/los-invisibles-latino-immigrants-in.html

 

 

Monday, August 2, 2010

Quinn Signs Law Penalizing Employers Who Shortchange Workers!!!

Employers who shortchange or don't pay their employees will face stiffer penalties and workers will have more rights under a bill Gov. Pat Quinn signed into law Friday, which experts say makes Illinois' wage theft laws among the strongest in the country.

Starting Jan. 1, a repeat offense will be considered a felony, not a misdemeanor. Also, employers who violate wage theft laws will have to pay workers back from the date of nonpayment with interest and a $250 fine. Depending on the violation, the employer may also owe interest to the Illinois Department of Labor.

"This protects all workers," said Ana Guajardo, director of Centro de Trabajadores Unidos, a workers center in Chicago. "Here in Illinois, we're not going to take this anymore."…

http://www.huffingtonpost.com/2010/07/30/quinn-signs-law-penalizin_n_665410.html