HARRISBURG, PA — In a concerted effort to clamp down on wage theft and ensure fair compensation for workers on public projects, Pennsylvania Attorney General Michelle Henry, alongside counterparts from 13 other states, has urged the U.S. Department of Labor to enhance payroll reporting requirements for contractors. This initiative aims to address loopholes in the current system that allow for labor law violations to go undetected.
The heart of the issue lies in the existing payroll forms, which lack the detail necessary to fully account for workers’ pay, deductions, and benefits. This oversight makes it easier for deceitful employers to engage in unfair labor practices, such as misappropriating funds meant for fringe benefits or unlawfully reducing workers’ pay through undisclosed deductions.
The call for more comprehensive reporting is grounded in the need to bolster enforcement of the Davis-Bacon and Related Acts. These laws are pivotal in safeguarding workers from exploitation by ensuring they receive fair wages and benefits for their labor on federally funded construction projects.
“Requiring employers to report more about their workers and their compensation will help Pennsylvania laborers and their families by ensuring they get the pay and benefits they deserve,” stated Attorney General Henry. She highlighted the collaboration with partner states as a crucial step toward making it more challenging for unscrupulous employers to evade the law at the expense of workers.
The coalition, which includes Attorneys General from Colorado, Connecticut, Washington D.C., Delaware, Hawaii, Massachusetts, Maryland, Michigan, Minnesota, New Jersey, Nevada, New York, and Rhode Island, outlined specific enhancements to the reporting process in their letter to the Department of Labor. These include disclosing hourly rate equivalents for each benefit provided, detailing information about benefit plans, and mandating the itemization of deductions from workers’ pay.
Illustrating the necessity of these changes, Attorney General Henry referenced a case in Pennsylvania where an employer manipulated job classifications to underpay electricians and plumbers, resulting in a theft of $64,000. Such schemes often result in significant financial losses for workers and are difficult to uncover without thorough reporting.
By advocating for these reforms, the Attorneys General aim to fortify the integrity of payroll reporting on public projects, thereby protecting workers from wage theft and ensuring they receive the compensation they rightfully earn. The initiative reflects a broader commitment to uphold labor standards and promote transparency and fairness in employment practices across the nation.
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