ReportWire

Tag: Department of Labor

  • Child labor violations on the rise, problem could get worse: report

    Child labor violations on the rise, problem could get worse: report

    [ad_1]

    (NewsNation) — Child labor violations are increasing, and over two dozen states have made moves that are exacerbating the issue, a recent report by Governing for Impact, the Economic Policy Institute and Child Labor Coalition says. 

    “Many assume that children working long hours in dangerous jobs is a thing of the distant past in the United States,” the report’s authors said. “Unfortunately, they’re wrong.”

    Injury rates almost doubled among workers under 18 between 2011 and 2020, the report said.

    The Fair Labor Standard Act, passed by Congress in 1938, authorized some restrictions on child labor. Still, the report says, in recent years there have been “noted increases” in child labor violations, workplace injuries and chronic absenteeism from school. 

    In FY 2023, the Department of Labor concluded 955 investigations and reported that it found a 14% increase in violations from the previous year. Nearly 5,800 children were working in ways that didn’t follow the laws, and the department assessed more than $8 million in penalties, an 83% increase from FY 2022.

    Organizations, in their report, detailed the stories of a 16-year-old boy who was killed while deep cleaning a piece of machinery in the deboning area of a Mississippi chicken processing plant. Proper supervision and precautions failed him, the report said.

    Another teen near Orlando, Florida, died at the construction site of a two-story house in 2019 when he fell from a height of 8 feet off a step ladder while holding a 24-foot flooring joist. The joist fell on the boy’s chest and killed him, the report said.

    A number of factors can lead to youth getting hurt on the job, including which occupation they’re employed in, the report said. Agriculture is an industry where the risks to child workers are the highest and regulations are the weakest, for example, according to the report.

    “Instead of addressing the troubling increase in workplace injuries among children, industry-aligned groups like those behind Project 2025 have actually proposed to change federal regulations to let more young people work in more dangerous jobs,” the report said.

    Project 2025 is a nearly 1,000-page handbook from conservative think tank The Heritage Foundation, as well as other organizations, that serves as a guide for what they want done under a Republican presidential administration.

    While Republican presidential nominee Donald Trump has distanced himself from Project 2025, dozens of people who worked closely with him during his time in the White House are involved in it, a fact Democratic nominee Kamala Harris’ campaign has pointed out. 

    Authors of Project 2025  wrote that some young adults “show an interest in inherently dangerous jobs.”

    “Current rules forbid many young people, even if their family is running the business, from working in such jobs. This results in worker shortages in dangerous fields and often discourages otherwise interested young workers from trying the more dangerous job,” Project 2025 authors said. “With parental consent and proper training, certain young adults should be allowed to learn and work in more dangerous occupations. This would give a green light to training programs and build skills in teenagers who may want to work in these fields.”

    Along with those in the industry pushing for less child labor protections, legislators in more than 30 states have taken steps to weaken them since 2021, Governing for Impact, the Economic Policy Institute and Child Labor Coalition wrote in their report.

    “Citing labor shortages and under pressure from industry groups, these states have taken steps to: allow children under 18 — often much younger — to work in dangerous occupations, limit employer liability when their child workers are injured, and let employers schedule children for overnight shifts,” the report said.

    What can be done to prevent child labor violations?

    Since 2021, the Department of Labor has “ramped up enforcement” of current federal regulations and given employers who have committed “some of the worst abuses” the maximum penalties, the report notes. However, “the regulations themselves are out of date and insufficient.” the report said. 

    “Even with full-throated enforcement of these regulations, it’s not enough to sort of protect kids from what’s going on now in the economy,” Reed Shaw, policy counsel at Governing for Impact and co-author of the report, told The Guardian. 

    Report authors had some suggestions for changes the department can make. These include expanding the list of occupations deemed too hazardous for workers under 18 years old; increasing protections for child workers in hazardous agricultural jobs; and issuing regulations prohibiting employers from scheduling certain child workers for overnight shifts, as well as requiring rest breaks and one-day off a week for others.

    [ad_2]

    Cassie Buchman

    Source link

  • Md. company accused of underpaying workers’ overtime ordered to issue thousands in back pay – WTOP News

    Md. company accused of underpaying workers’ overtime ordered to issue thousands in back pay – WTOP News

    [ad_1]

    A Bowie, Maryland, based concrete subcontractor accused of denying dozens of workers their full pay is being ordered to pay thousands in back wages, the U.S. Department of Labor said Wednesday.

    A Bowie, Maryland-based concrete subcontractor accused of denying dozens of workers their full pay is being ordered to pay thousands in back wages, the U.S. Department of Labor said Wednesday.

    The company, V&V Construction Inc., classified “journey workers” as “skilled laborers” incorrectly and, as a result, underpaid them for overtime, the department said. Similarly, the subcontractor didn’t pay workers “their correct prevailing wages and fringe benefits,” the agency said in a news release.

    Roberto Melendez, the department’s Wage and Hour Division district director in Richmond, said the investigation spanned from March 20, 2019 to March 17, 2021. Fifty-five workers “were not being paid the required wage,” he said.

    “When it comes to the construction industries, we do have a problem there,” Melendez said. “This is an industry that we continuously find violations.”

    WTOP reached out to V&V Construction for comment and has not yet received a response.

    The DOL investigation found the company and its owners paid workers using a split rate of 25 hours per week as fully journey workers and 15 hours per week as skilled laborers. It also found the company submitted falsified payroll records and didn’t prove that it put up required worksite posters.

    The workers, the investigation found, weren’t classified correctly on a federally funded housing project in D.C. They installed concrete as part of construction for Liberty Place Apartments in Northwest in August 2018. The company’s workers operated as a subcontractor to Hamel Builders of Washington LLC.

    When the government pays for a project, Melendez said, “there’s usually a place in that contract where specified trades are paid a specified rate. And so that’s what this was all about. It was about skilled workers not getting paid the wage that was required.”

    The DOL found that the company owed $195,492 in back pay to 55 workers, but the company didn’t make any payments and asked for a hearing with the Office of Administrative Law Judges.

    The Office of Administrative Law Judges, meanwhile, upheld the findings and ordered V&V to pay $186,124 in backpay to the workers. Melendez said the agency tries to make sure the payments are made within 30 days.

    The employers also agreed to a year and a half of independent monitoring of Davis-Bacon and Related Acts contracts “to ensure future compliance,” according to a news release.

    Before its investigation, Melendez said the agency didn’t have a history of investigating the company for other violations. The agency, he said, can’t disclose the reason why it may launch an investigation.

    In the construction industry, Melendez said violations are usually similar in nature, “where employees are not being paid either their proper rate, employees are either not getting paid for all the hours that they work, or they’re not being paid for the overtime that they also work.”

    Get breaking news and daily headlines delivered to your email inbox by signing up here.

    © 2024 WTOP. All Rights Reserved. This website is not intended for users located within the European Economic Area.

    [ad_2]

    Scott Gelman

    Source link

  • Wells Fargo reaches $145M settlement with feds over claims it ‘misused’ 401(k) plan

    Wells Fargo reaches $145M settlement with feds over claims it ‘misused’ 401(k) plan

    [ad_1]

    Wells Fargo reached a settlement with the Department of Labor on Monday on a federal investigation into its 401(k) plan.

    Wells Fargo reached a settlement with the Department of Labor on Monday on a federal investigation into its 401(k) plan.

    jkomer@charlotteobserver.com

    Wells Fargo has reached a $145 million settlement with the U.S. Department of Labor following an investigation into concerns over the the bank’s contributions to its 401(k) plan.

    From 2013 through 2018, Wells Fargo overcharged 401(k) funds for company stock purchased for the plan, according to the Labor Department. The bank denied the allegations, and said it hasn’t conducted the transactions in question since 2018.

    It’s the latest financial hit to the bank following a number of regulatory investigations into its activities.

    Under the settlement announced Monday, Wells Fargo will pay approximately $131.8 million to eligible current and former 401(k) plan participants. The bank also agreed to pay a $13.2 million penalty.

    “Our investigation found those responsible for Wells Fargo’s 401(k) plan paid more than fair market value for employer stock and, by doing so, betrayed the trust of the plan’s current and future retirees,” Labor Secretary Marty Walsh said in a news release.

    The result, he said, was that retirement assets were “misused” and benefit plans suffered.

    “The company strongly disagrees with the DOL’s allegations and believes it followed applicable laws in conducting the transactions,” the bank said in its news release. But it added that resolving the matter was “in the best interest of the company.”

    As part of the settlement, the bank agreed to redeem certain preferred securities held by its 401(k) plan in exchange for shares of the company’s common stock.

    In February, Wells Fargo disclosed in a securities filing that the Labor Department, along with other federal agencies, was looking into its 401(k) plan.

    Wells Fargo is based in San Francisco but has its largest employment hub in Charlotte, with more than 27,000 workers here.

    A series of concerns about Wells Fargo

    Wells Fargo has faced a number of disputes with regulators and lawmakers in the last year, continuing a streak of negative publicity that has plagued the bank since its 2016 fake accounts scandal surfaced. In that case, bank employees created millions of accounts for customers without their knowledge.

    In March, a Bloomberg investigation found that Wells Fargo approved fewer than half of Black homeowners’ mortgage refinancing applications in 2020, compared with 72% of white applicants. That led to 11 senators calling for a review of the bank’s mortgage refinancing processes.

    U.S. Sen. Sherrod Brown, D-Ohio, decried the bank’s “history of consumer abuses and gross mismanagement” in public comments in May.

    Brown’s criticism was spurred by a New York Times report stating the bank had a number of “fake” interviews with female applicants or job candidates of color. The bank revamped its hiring guidelines in response to the backlash.

    That same month, the bank’s broker-dealer business, Wells Fargo Advisors, settled with the Securities and Exchange Commission for $7 million on charges related to anti-money laundering law violations.

    And nearly a year ago, the bank was fined $250 million by the Office of the Comptroller of the Currency for failing to properly compensate customers affected by the bank’s prior “unsafe or unsound” home lending practices.

    This story was originally published September 12, 2022 11:43 AM.

    Related stories from Charlotte Observer

    Hannah Lang covers banking, finance and economic equity for The Charlotte Observer. Her work has appeared in The Wall Street Journal, the Triangle Business Journal and the Greensboro News & Record. She studied business journalism at the University of North Carolina at Chapel Hill and grew up in the same town as her alma mater.

    [ad_2]

    Source link