Tag Archives: Workers Rights

County Announces Recovery of Unpaid Wages for 318 County Contractors

by on June 17, 2016 in Press Releases

Legislation Introduced by Councilmembers Navarro and Elrich Provides Necessary Enforcement Power

ROCKVILLE, Md., June 17, 2016—Today the Montgomery County Office of Procurement announced the recovery of $300,070 in unpaid wages for 318 individuals employed by five different service contractors engaged in contracts with the County.  Last year Councilmember Nancy Navarro, who serves as chair of the Council’s Government Operations and Fiscal Policy Committee and Councilmember Marc Elrich, who serves as chair of the Council’s Public Safety Committee, introduced Bill 43-15 to enhance enforcement of the County’s Wage Requirements Law, which is also known as the “living wage” law.

The County Council unanimously enacted the living wage legislation, which took effect on May 10, 2016. Cherri Branson, director of the County’s Office of Procurement, credited the law with giving her office the additional “enforcement power” needed to take this unprecedented action.

“It is unconscionable that this type of illegal behavior, which is harmful to our most vulnerable workers, went on for so long,” said Councilmember Nancy Navarro. “I am pleased that the County Council took the necessary steps to ensure that our Office of Procurement has the tools and resources required to enforce the law.  We must make sure that all of our workers are paid the County’s living wage.”

“In 2002, the Council passed a living wage bill with the clear intent to provide employees with a living wage,” said Councilmember Elrich. “It is unfortunate that certain unscrupulous business owners managed to subvert the intent of the law, to the detriment of their employees. As amended today, the law now has clear reporting requirements and distinct penalties for not paying employees on County contracts a living wage. I am proud to stand with Councilmember Navarro and my colleagues in sending this clear message that the County will protect contractor employees’ right to earn a living wage.”

The Office of Procurement has identified the companies, who have since taken corrective action, as Camco; LT Services; Potomac Disposal; Securitas; and Unity.

The current living wage rate is $14.35 per hour for fiscal year 2016. Starting July 1, 2016, the rate will increase to $14.40 per hour for fiscal year 2017.  Enacted Bill 43-15 can be viewed at:

http://www.montgomerycountymd.gov/COUNCIL/Resources/Files/bill/2015/20160202_43-15A.pdf

 

 

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Council Strengthens Living Wage Law Enforcement

by on February 2, 2016 in Press Releases, Uncategorized

ROCKVILLE, Md., February 2, 2016—The Montgomery County Council today unanimously approved legislation to significantly strengthen the enforcement of the County’s Living Wage law. Montgomery County service contractors are required to pay their workers a living wage set annually based on the rate of inflation. Bill 43-15 addressed concerns that that some employers were making deductions to their workers’ paychecks without the consent of the worker.

Possible violations of the living wage law were first reported by The Washington Post in May 2015. In October, lead sponsors Councilmembers Nancy Navarro and Marc Elrich introduced Bill 43-15. Councilmembers George Leventhal and Hans Riemer co-sponsored the bill.

The Post reported that approximately 140 governments nationwide have similar living wage laws to Montgomery County. That story can be found at http://tinyurl.com/gv765h3 .

The current living wage for employees working for contractors with Montgomery County is $14.35.

As approved, Bill 43-15 accomplishes the following:

  • Requires detailed payroll records to be submitted quarterly to the Office of Procurement and requires the County to retain those records for at least five years.
  • Establishes strong penalties, such as suspension and debarment, for a Living Wage law violation.
  • Requires the County to perform regular and random audits and allows the County to recover costs for performing an audit as a result of an enforcement action.
  • Prohibits an employer from making a deduction for any item necessary for an employee to perform the essential job function.
  • Allows the County to withhold payment to a contractor found in violation of the Living Wage law.
  • Removes the exemption in the Living Wage law for employees subject to collective bargaining agreements.

“I am pleased my colleagues unanimously supported this legislation to strengthen the County’s Living Wage law,” said Councilmember Navarro. “Montgomery County’s Living Wage law is designed to protect workers from abuses by employers and Bill 43-15 provides teeth to ensure the County can enforce it appropriately. Now, workers and the County will have recourse if an employer is not paying their employees fairly.”

Councilmember Elrich said: “In 2002, the Council passed a living wage bill with the clear intent to provide employees with a living wage. It is unfortunate that certain unscrupulous business owners managed to subvert the intent of the law, to the detriment of their employees. As amended today, the law now has clear reporting requirements and distinct penalties for not paying employees on County contracts a living wage. I am proud to stand with Councilmember Navarro and my colleagues in sending this clear message that the County will protect contractor employees’ right to earn a living wage.”

County Executive Ike Leggett will have 10 days to approve the bill after he receives it from the Council. The bill will take effect 91 days after it is signed by the County Executive.

 

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Affordable Health Insurance for County Contractors

by on September 15, 2015 in Uncategorized

In the fall of 2013, I began working to make sure the lowest income employees of Montgomery County’s contractors had access to affordable health insurance. In 2014, I introduced Bill 14-14, requiring County contractors to provide affordable health insurance to
health-insurancetheir employees.

Through the legislative process, the bill was amended (and passed in April 2015) to make some very important changes to help these employees obtain health insurance. First, the new law requires County contractors to allow Health and Human Services (HHS) employees to help their employees sign up for the Affordable Care Act (ACA) during work hours. The Council added $30,000 to the budget this year for HHS staff that will focus on this target population. Next, Bill 14-14 requires all County contractors to submit payroll reports that include information on how many of their employees have health insurance and the premium split. This information will allow the County to better understand the universe of uninsured employees of County contractors so we can provide help to get them covered. Finally, the new law strengthens the Living Wage Law by requiring the County to keep these payroll/health insurance records on file for at least three years. This provision will enable employees to challenge employers in court if they believe they were paid less than the Living Wage. The Council added about $100,000 to the budget to enforce this section of the law.

While Bill 14-14 was a good first step, the work of making sure employees of County contractors have access to affordable health insurance is not over. That’s why I introduced Bill 5-15, which creates an incentive for businesses to provide insurance to their employees that seek to do business with the County. The bill creates a preference (to be determined for each contract) for businesses that offer health insurance to their employees. Today, the Council approved Bill 5-15 by a vote of 7-1.

I want to thank my colleagues for their support of these initiatives over the past two years. Bill 14-14 and Bill 5-15 will ensure more of our lowest-paid workers have access to affordable health insurance.