CHARLESTON, W.Va. - A Florida contractor confessed to defrauding workers on a Braxton County project, but still won a million-dollar state contract in Charleston. The contractor now could be in legal trouble again by not using West Virginia workers on the new job.
In August, Nomiki and Michael Valvlas pled guilty to fraud for violating federal wage-and-hour rules on a bridge contract with federal highway funds. Brian Stanley, director of marketing for Painters and Allied Trades District Council 53, said the company has changed its name from VHP Enterprises to International Rigging Group and got another state contract to spot-paint the Yeager Bridge.
"Cheating workers out of wages, misclassification and then lying on documents," he said, "and they just pled guilty to that. How can they come back to West Virginia and bid on another state project?"
Stanley claimed the contractor has brought all - or almost all - the workers for the Yeager Bridge project from out of state - even though the West Virginia Jobs Act requires that contracts paid for with public money use 75 percent in-state workers. Stanley said qualified West Virginians were turned away when they applied.
"I know of 14 local industrial painters who have bridge-painting experience - they're journeymen - that applied," he said. "None of 'em were contacted to be hired."
He said the company hasn't changed anything but its name, and International Rigging even uses the same Florida headquarters.
"That's the same address as VHP. Same principal officers, same location," he said, "The equipment they used under VHP is the same equipment they use under International Rigging."
Calls to the two companies rang to the same office, and both firms referred questions to the same attorney. That lawyer promised to call back and answer questions, but has not.
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With hotter summers bringing hotter working conditions, the Maryland Department of Labor is implementing a heat stress standard to protect workers but workers' advocates said it falls short on specifics.
In 2020, the Legislature directed the Labor Department to establish new heat stress protections for workers. A draft standard was released in January for indoor or outdoor work environments when the heat index is above 80 degrees.
Darryl Alexander, adviser for the National Council for Occupational Safety and Health, said the plan does not establish specifics for monitoring.
"They ought to be required to say how they're going to monitor the workplace for changes in temperature, humidity, heat index," Alexander asserted. "The way they require to monitor the workplace for noise, or chemicals or anything else - that, in their written plans, they have to say how they're going to do it."
Alexander argued ideally, employers would be required to use what's known as a "wet bulb globe temperature meter," which monitors the heat index as well as measuring radiant heat from sources such as ovens or sunlight.
The draft standard requires employers to put an effective heat illness prevention and management plan in writing and provide workers annual heat stress training. When the heat index reaches 90, it requires employers to consider the effects of personal protective equipment on heat stress but there are no specifics on how to do it.
Scott Schneider, another adviser for the National Council for Occupational Safety and Health, said how hard you are working and what you are wearing can both contribute to heat stress.
"If you're working and you're wearing impermeable clothing; like you're wearing, like a Tyvek suit, like you're doing asbestos abatement, or if you're out in the fields and you have protective clothing to protect you from pesticide use; that clothing can prevent you from sweating," Schneider noted. "That also will increase your heat stress risk."
He added when calculating heat stress risk, there are methods to account for protective clothing or harder work. He thinks the standard should include specifics on both. The Department of Labor is expected to have the plan finalized by this summer.
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Minnesota is among the states taking a closer look at extending unemployment benefits to workers who go on strike. A bill making its way through the Legislature would make workers involved in a walkout of at least one week eligible for jobless benefits.
In the past year, labor economists have said, there's been positive movement with wage growth. However, backers of Minnesota's plan are pointing to major gaps between corporate profits and the pay most workers receive.
When those individuals want to fight for fair compensation, Jake Schwitzer, executive director of the left-leaning think tank North Star Policy Action, said they're at a big disadvantage in taking on ownership.
"They can use their considerable profits to engage in bad-faith negotiating tactics, and simply wait out their poorly paid workers," he said.
During labor disputes, Schwitzer said, providing unemployment benefits alleviates hardships and empowers workers to keep fighting.
Critics have cited the potential costs and disincentivizing people to work. However, research from Schwitzer's group estimates fewer than 200 additional workers are added to the unemployment rolls in these cases.
Nearly 10 other states have either debated or enacted similar laws.
John Kontzelmann, secretary-treasurer of UAW Local 125, said a walkout is viewed as a last resort, while noting the recent auto workers' strike was a tough choice for many of his colleagues.
"The uncertainty of no or reduced income, for an unknown amount of time, was very stressful and worrying," he said.
Without small levels of assistance from a union strike fund, Kontzelmann said, making ends meet would have been even more challenging for workers and their families.
The Minnesota bill cleared a House committee this week. It's unclear if it will win final legislative approval.
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Critics say a bill passed by West Virginia lawmakers increases the bureaucratic red tape folks who rely on unemployment benefits have to navigate and could financially hurt families already struggling with the high cost of living and ongoing inflation.
Kelly Allen, executive director with the West Virginia Center on Budget and Policy, said the bill includes new reporting from employers and job research requirements for recipients, but keeps the maximum number of benefits available at 26 weeks.
"Safety-net kind of programs like this, that help bridge families between jobs and keep them economically secure, is a really important tool," Allen said.
Senate Bill 841 also limits the amount of money employers pay into the unemployment fund to $9,500 of an employee's earnings. Supporters of the bill argue the state's trust fund is in peril and say the measure helps save money. The bill goes into effect on July 1.
Allen pointed out that research shows unemployment insurance helps families stay afloat during economic downturns, and provides continuous income for basic household needs. She added that unemployment insurance has also been linked to reduced rates of child abuse and neglect.
"We know that generous unemployment insurance and robust unemployment insurance benefits mitigate the impact that those economic shocks have on families and the data shows can actually reduce child welfare involvement, " Allen continued.
According to state data, the state's unemployment rate was nearly 5% as of the beginning of this year.
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