Rhode Island

Is this the year the RI General Assembly does something about wage theft?

Published

3 years ago

April 17, 2022

Press Room

The North Atlantic States Carpenters, Native 330, held their third, almost-annual Tax Day of Motion on the south facet of the Rhode Island State Home on Thursday afternoon to spotlight two items of laws being thought-about within the Normal Meeting.

H7677/S2775 will make wage theft a felony.

“To me, it’s a matter of basic equity,” mentioned Legal professional Normal Peter Neronha, testifying in help of the invoice earlier than the Home Judiciary Committee listening to the night time earlier than the tax day rally. “When you get past all the legalese and statutory language on this invoice, what it comes all the way down to is that this: If somebody steals your pet or your equipment, and the worth is over $1,500, that’s a felony, but when they steal your hard-earned wages, irrespective of how a lot it’s, it’s all the time a misdemeanor. I don’t know the way we received to this place within the legislation, but it surely appears to me that it’s now time to repair it.”

The opposite invoice, if handed, will maintain contractors answerable for unresolved wage theft dedicated by their subcontractors. Proper now, contractors make use of subcontractors who oftentimes don’t correctly pay their staff. This legislation would enable officers to maneuver “up the chain” and maintain the final contractor accountable if the subcontractor fails to pay staff what they’re legally entitled to.

Wage theft in the US far outstrips throughout types of theft, mixed. In 2017 it was estimated to have price staff round $8 billion {dollars}.

Elevating wage theft to the extent of a felony will assist the Rhode Island Legal professional Normal to prosecute thieving bosses.

“It is extremely tough if not unimaginable to make use of the grand jury in these circumstances as a result of they’re misdemeanors, the grand jury being an arm of the superior courtroom,” mentioned Legal professional Normal Neronha. “The opposite sensible difficulty, is that extradition on misdemeanors may be very, very tough. We had a case the place there have been two people who have been ripping off their workers, stealing their wages, not paying their final pay checks, who left the state. [They were] final seen in Texas, and we will’t extradite them to carry them again.”

The Better Windfall Chamber of Commerce and the Northern Rhode Island Chamber of Commerce despatched their paid lobbyists to the Home listening to to oppose the invoice.

Robert Goldberg is paid $55k a 12 months by the Better Windfall Chamber to advocate in opposition to payments like these. Goldberg tried to painting the invoice as felonizing harmless conduct, reminiscent of when a mistake is made in paying wages.

“The large stress of a felony looming over an sincere businessman, until you’ve represented or handled these individuals, you’ll not perceive,” mentioned Goldberg. “It retains ’em awake at night time. It detracts their focus, every thing. Oh, did I misclassify this man improper? There’s sufficient worries with operating a enterprise, with out a felony looming within the background for sincere companies…

“You’d be amazed at how lots of the bigger employers in busy seasons or different circumstances have to rent fast assist to resolve an issue. Are they gonna be charged with a felony? You’re taking a closely regulated monetary establishment or banking establishment or one thing like that. And it’s the employer that bears the cost right here. Simply being charged with that felony is manner past the scope.”

Lobbyist Terrance Martiesian is paid $36k a 12 months by the Northern Rhode Island Chamber to advocate in opposition to the rights of working individuals. Martiesian’s tactic was to use the present “labor scarcity” scenario the place an increasing number of individuals are working from dwelling.

“Many individuals are refusing to return to work within the conventional mannequin, as they’ve turn out to be accustomed to working from dwelling or are having fun with a extra versatile work schedule,” mentioned Martiesian. “It’s simple to ascertain a labor market with extra people selecting to function as impartial contractors and companies compelled to embrace the brand new dynamic, to meet wanted duties inside the firm…

“This couldn’t be a worse time to move this invoice. Daily you learn the paper, employers can’t get workers to work,” mentioned Martiesian, who urged the legislature to attend to see how the labor market evolves earlier than appearing.

Why would the Chambers of Commerce be against wage theft if the Chambers characterize sincere companies?

“Frankly, I’m fairly shocked that the Chambers of Commerce wouldn’t help this laws as a result of the people who find themselves harmed when wages are stolen fall into two classes,” mentioned Jennifer Wooden, talking because the Director of the Rhode Island Middle for Justice. “Within the first occasion, it’s the employee whose labor has been stolen and wages have been stolen by their employer refusing to pay per the legislation. And secondly, it’s sincere enterprise individuals who run their companies in compliance with the wage and hour legal guidelines and are positioned at a major financial drawback when their opponents are in a position to provide the general public a cheaper price for items and providers, as a result of they’re not paying their staff. That may be a actually unfair enterprise follow. And the way can sincere enterprise individuals be anticipated to compete within the market if different enterprise homeowners are merely deliberately refusing to pay the workforce?”

Each the Legal professional Normal and the Middle for justice agree that companies which are making sincere efforts to correctly pay their workers wouldn’t be unfairly victimized by this invoice.

Right here’s the video of the Home Judiciary listening to: