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Washington, DC, Attorney General Brian Schwalb filed a lawsuit against five companies in late June, alleging that they engaged in a “widespread misclassification scheme that deprived hundreds of District construction workers the wages and benefits they were entitled to under DC law.”

The companies — Whiting-Turner Contracting Company, W.G./Welch Mechanical Contractors, LLC and three labor brokers (Mechanical Plumbing Crew Co., Ramirez Plumbing Inc. and GINCO HVAC, LLC) — are accused of denying workers the proper minimum wage, overtime and paid sick leave they deserve.

A Washington Post article on the lawsuit reported that SMART Local 100 organizers and members played a role in helping workers fight for their rights.

Local 100 job action related to the DC OAG lawsuit.
Local 100 job action related to the DC OAG lawsuit.

“The construction industry is loaded with nonunion contractors who hire subcontractors called labor brokers to act as intermediaries between the workers and the construction companies,” said Chuck Sewell, marketing director for Local 100, in a press release from the DC Office of the Attorney General. “This leads to a diffusion of responsibility, where neither the broker nor the construction company takes full responsibility for the workers’ conditions, rights and welfare.”

Bad-faith, nonunion contractors and labor brokers often misclassify workers to avoid paying taxes, work compensation and other requirements, Sewell added, noting that labor brokers “often put their workers on projects without sufficient training, risking their safety and resulting in poor quality workmanship.”

At a mixed-use development in DC known as City Ridge, sheet metal worker Edwin Mayorga and approximately 370 of his fellow workers said that they weren’t paid in full.

“We worked 12 hours a day from Monday to Friday, and on Saturday we worked 10 hours, Sunday, 10 hours, practically,” he said in Spanish [to the Post], through an interpreter. “We weren’t resting.”

Local 100 Organizer Rolando Montoya connected with workers at the City Ridge jobsite after hearing complaints that they weren’t getting paid, helping them access resources to fight for the compensation they were owed.

“Our contractors that are being responsible, paying for training, paying good wages, benefits — when they bid on these projects, they can’t compete,” Montoya said in the Post article. “It’s affecting union workers, because it’s less work.”

Fighting wage theft and uncovering low-road contractors isn’t just the right thing to do for exploited workers and high-road contractors; it illuminates the difference provided by union representation, helping SMART locals recruit more workers. One example: the sheet metal worker from the City Ridge project, Edwin Mayorga, who has since joined Local 100.

“It’s a huge difference,” he told the Washington Post, “mainly because one is not fighting to get paid.”

Wage theft and worker misclassification are forms of exploitation that litter the construction industry, where unscrupulous employers take advantage of employees to pay them less than what they are owed. A recent Economic Policy Institute (EPI) study found that construction workers lose out on as much as $16,729 per year in income and job benefits; the EPI also reported that wage theft costs American workers as much as $50 billion per year — more than annual robberies, burglaries and motor vehicle thefts combined.

SMART locals are fighting against such practices from coast to coast – helping workers win the pay that they deserve.

Watch coverage of victories against wage theft and worker misclassification by SMART local unions.

“Wage theft is occurring everywhere in the construction industry, and employers will take advantage of those people who may not know what their rights are or have any idea of what prevailing wages are,” SMART Local 16 (Portland, Oregon) Business Manager Brian Noble explained in a recent episode of SMART News. “That’s who they prey on.”

SMART Local 16 has filed 10 prevailing wage complaints against 360 Sheet Metal, an aggressively anti-union contractor in Vancouver, Washington, whose workers previously went on strike after joining Local 16. The company was paying workers $12 to $15 an hour for fabricating duct in its shop, at a time when the prevailing wage (which applies to fabrication of ductwork in the state) was more than $65 an hour.

The Washington Department of Labor & Industries has resolved four of the 10 complaints so far.

“In those four cases,” Noble said, “they found that [the owner of 360 Sheet Metal] owed over $200,000 in back wages to 20 workers, and they assessed $115,000 in penalties for failing to pay prevailing wage in the shop.”  

In Virginia, meanwhile, SMART Local 100 filed a complaint with the U.S. Department of Labor (DOL) alleging that a nonunion contractor on the Potomac Yards Metro Station project had misclassified sheet metal workers performing metal roofing work on the station. This resulted in them being paid approximately 60% less than the prevailing wage – hurting those workers and taking work away from Local 100.

“Misclassification is pretty rampant across the country,” explained Local 100 Marketing Director Chuck Sewell to SMART News. “Our contractors have to abide by certain rules, they have to pay certain rates, they know what the rates are, so that’s how they bid the projects. If you have these low-wage contractors come in and undercut everybody and get the project, it takes work hours from the local.”

The DOL investigation, which ended in the fall of 2022, found that the employees in question were, in fact, misclassified, resulting in more than $288,000 in back wages being recovered for eight workers.

Such wins against wage theft and worker misclassifications are critical for employees, ensuring that they are fairly compensated for their labor. They also demonstrate the crucial role unions play in representing all workers, including those who have yet to be organized.

“It’s important that we make sure all workers are represented and get what they deserve,” Noble concluded. “[It’s vital] that we stop these employers from undercutting our contractors and the industry, and most importantly, that these underrepresented workers are getting what’s truly owed to them.”

A new analysis by the Eco­nomic Policy Institute (EPI) estimates that misclassified construction workers lose out on as much as $16,729 per year in income and job benefits compared with what they would have earned as employees. The study, which broadly focuses on worker misclas­sification across multiple industries, not only demonstrates the economic cost faced by workers when their employer denies their basic rights on the job; it also reaffirms the need for Congress to pass pro-worker laws like the Protecting the Right to Organize (PRO) Act.

Worker misclassification is one of the more common ways bad-faith employers deprive workers of their rights and fair compensation. By incorrectly classifying an employee as an independent contractor, employers deprive workers of, among other things:

  • Overtime wage and hour protections;
  • The right to earn a minimum wage;
  • Eligibility to participate in state and federal unemployment insurance systems or qualify for workers’ compensation insurance;
  • National Labor Relations Act protections that guarantee workers’ rights to form a union and bargain collectively for better pay and benefits.

The EPI study analyzed the 11 professions most likely to be misclas­sified by employers, including home health aides, landscapers, truck drivers, janitors and nail salon workers. (Notably, the analysis pointed out, “people of color and immigrant workers are more likely to be in occupations where misclassification is common.”) For construction workers, the disparities for misclassified workers — especially when compared to the wages and benefits negoti­ated in a union contract — could mean the difference between a family-sustaining career and living paycheck to paycheck.

The devastating effects of worker misclassification demonstrate how important it is that SMART members and locals work to bring unorga­nized workers into the union.

“According to our calculations, illegal misclassification costs the typical construction worker between $10,177 and $16,729 per year,” the EPI wrote in its study. “These esti­mates are both conservative because we have not attempted to place a monetary value on the worker’s loss, when misclassified as an indepen­dent contractor, of rights guaranteed by the National Labor Relations Act, including the possibility of union representation.”

The EPI added: “Policymakers should establish or expand the use of a strong, uniform protective legal test for determining employee status and pass the Protecting the Right to Organize (PRO) Act, which would make it harder for employers to misclassify employees in order to prevent them from forming a union and bargaining collectively.”

The devastating effects of worker misclassification demonstrate how important it is that SMART members and locals work to bring unorga­nized workers into the union.

“Contractors who misclas­sify their employees aren’t just depriving those workers of pay, benefits and protections; they are actively bringing down the wages and working conditions in local areas, and exploiting working families in order to strengthen their market share — taking jobs from SMART members in the process,” said SMART General President Joseph Sellers. “By fighting against misclassification and bringing those workers into SMART, we lift all workers up — including our current and future members.”

"For us to get to this point that we could repeal right-to-work and get prevailing wage reinstated is a huge win for labor." — SMART Local 80 (Detroit) Business Manager Tim Mulligan Workers won a huge victory in Michigan in March 2023 month when the Democratic-controlled state legislature and governor kept their promises and repealed the state’s so-called right-to-work law, while also restoring prevailing wage legislation. Republicans passed right-to-work legislation in 2012, when they controlled state government. This forced unions to represent members who refused to pay union dues, and weakened our bargaining power. Since then, Michigan’s unionization rate has dropped significantly, and the state’s median wage has fallen below that of many other U.S. states. SMART members and union workers across Michigan worked tirelessly since 2012 to repeal the state’s right-to-work law.
Michigan Repeals Anti-worker “Right-to-Work” Law
YouTube Video UExFekJDRUFvTFJZb0dMbHNpajd3aGZIRHF3ekVjaXllWS41NkI0NEY2RDEwNTU3Q0M2

Michigan Repeals Anti-worker “Right-to-Work” Law

"I wasn't really sure what to expect. But after I got those first few paychecks as a second-year apprentice, my pay was about the same as I was making in the military as a specialist. And now that I'm a fourth-year apprentice, I'm making more than what I ever could have dreamed of." — Sean Thompson, SMART Local 66, Dupont, WA The SMART Heroes program graduated its 500th participant in March 2023, reaching this milestone in just over five years. The program provides accelerated sheet metal industry training, free of charge, to active-duty U.S. military men and women and recent veterans, helping them transition to family-sustaining, union careers once they leave military service. Learn more: https://www.smart-heroes.org
SMART Heroes, Veterans Celebrate 500th Grad Milestone
YouTube Video UExFekJDRUFvTFJZb0dMbHNpajd3aGZIRHF3ekVjaXllWS4yODlGNEE0NkRGMEEzMEQy

SMART Heroes, Veterans Celebrate 500th Grad Milestone

"In those four cases, they found that [the owner of 360 Sheet Metal] owed over $200,000 in back wages to 20 workers and they assessed $115,000 in penalties for failing to pay prevailing wage in the shop." — Brian Noble, Business Manager, SMART Local 16 (Portland, Ore.) Wage theft and job misclassification are forms of exploitation that plague the construction industry, where far too many unscrupulous employers take advantage of employees. Across the United States and Canada, SMART is standing up for prevailing wages, battling wage theft and job misclassification, and helping workers get the pay and treatment they deserve. This video highlights recent victories by sheet metal workers in Washington state and Virginia.
Sheet Metal Union Wins Back Pay for Wage Theft, Job Misclassification
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Sheet Metal Union Wins Back Pay for Wage Theft, Job Misclassification

In a significant victory for SMART and freight rail safety, Ohio has become the ninth state to require a two-person crew on freight trains. The state legislation was passed on March 31, 2023. A few days before that bill was passed, SMART-TD Ohio State Legislative Director Clyde Whitaker testified before a U.S. Senate committee hearing that focused on conditions leading up to the February derailment and subsequent toxic chemical spills in East Palestine, Ohio, as well as the proposed Railroad Safety Act of 2023. "This derailment [in East Palestine] did not have to happen," said Whitaker. "And it makes it so much more frustrating for us to know that it was very predictable. And yet our warnings and cries for help over the last seven years have fallen on deaf ears. And the outcome was exactly as we feared. Now, the result is a town that doesn't feel safe in their own homes, businesses failing to survive and a railroad that prioritized its own movement of trains before the people in the community, as well as its workers." The committee also heard from Ohio Governor Mike DeWine, rail industry stakeholders and the state’s two U.S. Senators — Sherrod Brown and J.D. Vance. "Norfolk Southern followed the Wall Street business model: Boost profits and its stock price by eliminating over the last decade 38 percent of its workforce," said Sen. Brown. "These profits were spent on stock buybacks that benefit executives instead of iinvesting in workers and investing in safety. Instead, they compromise safety cut costs to boost profits, the communities along their route be damned View Whitaker's full testimony before the Senate committee here: https://youtu.be/kPQvTfk3Y8I
SMART-TD Testifies on Rail Safety, East Palestine at Senate Hearing
YouTube Video UExFekJDRUFvTFJZb0dMbHNpajd3aGZIRHF3ekVjaXllWS41MjE1MkI0OTQ2QzJGNzNG

SMART-TD Testifies on Rail Safety, East Palestine at Senate Hearing

As a result of massive investment and new megaprojects from companies like Intel, Honda and more – spurred in large part by federal legislation like the Bipartisan Infrastructure Law, the CHIPS and Science Act and the Inflation Reduction Act – the Ohio State Building and Construction Trades Council estimates that more than 115,000 union workers will work full time from 2023 to 2025. The enormous number of jobs on these projects opens a huge window of opportunity for sheet metal workers for years to come, for both current and future SMART members. North America’s Building Trades Unions (NABTU) highlighted these opportunities during a “Meeting the Moment” event in Columbus in March. The event featured leaders and members from across the trades. SMART Local 24 Journeyperson McKenzie Quinn joined elected officials and others to talk about one thing: The more than $155 billion worth of projects currently breaking ground in Ohio. "I am very excited about the big jobs that are coming up," said Quinn. "We have many opportunities that they offer for those who are willing to work, work hard and learn new skills."
Union Building Trades Highlight OH Megaprojects, Jobs
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Union Building Trades Highlight OH Megaprojects, Jobs

SMART Army activists with sheet metal and transportation locals across the United States and Canada rolled up their sleeves and mobilized to serve their communities throughout the month of April . We spoke with Johnny Walker, Secretary for the SMART-TD Maryland State Legislative Board, about work SMART members did at Curtis Bay Elementary School in Baltimore to help clear brush, put down mulch, clean up a garden area and paint inside the school. "It was overall a great opportunity for all of us to get together," said Walker, "and kind of take a break from what we do at transportation and, you know, really give back to the community." We also spoke with SMART Local 280 (British Columbia) Business Representative Jeff Lind and about how members of his local turned out for the Vancouver Steps For Life Walk, helping the event sponsors to raise a total of $66k towards helping families who have suffered a workplace tragedy.
April is SMART Army Month of Community Action
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April is SMART Army Month of Community Action

GP Sellers Reflects on SMART's Pension Progress
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GP Sellers Reflects on SMART's Pension Progress

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SMART released the latest episode of SMART News on Tuesday, May 2. Episode eight features videos on organized labor’s success repealing so-called right-to-work in Michigan; SMART Heroes reaching the 500th graduate milestone; victories against wage theft in Virginia and Washington; SMART-TD’s rail safety efforts in the U.S. Senate; SMART members’ retirement security; and much more.

Watch individual videos from this episode:

SMART Local 80 Business Manager Tim Mulligan detailed the “travesty” of Michigan Republicans passing right-to-work legislation and taking prevailing wage away from union members in the Wolverine State; he also explained how organized labor worked with pro-worker elected officials to restore full collective bargaining power and prevailing wage in March of this year.

“Local 80, 7, 292 and actually our Transportation Division, we came together as one to get rid of right-to-work,” Mulligan told SMART News. “The repeal of right-to-work and the reinstatement of prevailing wage is so important for Michigan as a state.”

Later in the episode, International Training Institute Administrator Michael Harris and SMART Heroes graduates Kevin Moore and Sean Thompson spoke about the impact that SMART Heroes has had on their lives – as well as the other 500 military servicemembers and recent veterans the program has graduated over the last five years.

“I was honestly a little bit shocked at the level of camaraderie and brotherhood [in the union], that mimicked what I had in the [service],” said U.S. Army veteran Moore.

In other segments, SMART locals detailed recent victories on behalf of workers harmed by wage theft and worker misclassification; SMART-TD Ohio State Legislative Director Clyde Whitaker testified for rail safety in front of the U.S. Senate Commerce Committee; Local 24 members highlighted enormous megaprojects and job opportunities in central Ohio; and members in Maryland and Canada talked about their work serving their neighbors during the SMART Army’s month of community action in April.

Finally, SMART General President Joseph Sellers reflected on the progress our union has made on pension strength and security, progressing from the red zone, to the yellow zone, and finally to the green zone in January of last year.

“I wasn’t quite sure that I, during my working career, would have the opportunity to see a green zone National Pension Fund,” Sellers said in his interview with SMART News. “That was a really good process for us.”

Watch all episode eight segments here.

Former Secretary of Labor Marty Walsh (left) and Deputy Labor Secretary Julie Su.
Former Secretary of Labor Marty Walsh (left) and Deputy Labor Secretary Julie Su. No official affiliation with or endorsement from the Department of Labor. Photo Credit: Department of Labor Alyson Fligg

From trafficked garment workers to misclassified truck drivers, from future union apprentices to business owners who abide by the law, the record is clear: Current Deputy Labor Secretary Julie Su is the right choice to lead the U.S. Department of Labor. She has a proven track record of acting on working families’ behalf – not just talking the talk – dating back to her days as a human rights lawyer.

Su began her career as an attorney working for a small nonprofit called the Asian Pacific American Legal Center, where she made headlines for a groundbreaking federal lawsuit filed on behalf of 72 Thai garment workers who were forced to work 18 hours a day in sweatshop conditions in El Monte, California. The lawsuit resulted in more than $4 million in restitution for the workers; it also kickstarted Su’s career-long dedication to fighting against wage theft and worker exploitation.

“For decades Julie Su has fought tirelessly for the rights of working people, from her time as a civil rights attorney, to her tenure as California labor secretary, to her current position as United States deputy secretary of labor,” SMART General President Joseph Sellers remarked at the time of Su’s nomination for labor secretary. “No matter her title or role, Su works to ensure safer workplaces and stronger protections for all.”

Su’s time as labor commissioner and then labor secretary of California demonstrates her commitment to fighting on behalf of SMART members and workers everywhere. She worked diligently to expand apprenticeship programs for California workers who chose not to attend college, and her relentless crusade against wage theft – including California’s “Wage Theft Is a Crime” campaign – led to countless workers receiving the pay they deserve. (It also rewarded employers who follow the law by cracking down on those who would exploit their way to bigger profits.) Su also recognized the pervasive, anti-worker threat posed by misclassification, filing suits against employers who categorized workers as independent contractors and deprived them of better pay, benefits and the ability to form a union.

“Workers of all walks of life have benefited from her advocacy, particularly her fierce struggle against worker misclassification and wage theft – two issues that are rampant in the construction industry,” Sellers added.

As much as Su has focused on enforcing labor laws and holding bad-faith employers accountable, she has done just as much to expand opportunities and position the working class for a favorable future. As leader of California’s Future of Work Commission, Su spearheaded the state’s initiative to ensure workers come first in the face of future technology and policy developments. And most recently, Su worked as former Secretary of Labor Marty Walsh’s right hand in spurring record job growth, nullifying the Industry Recognized Apprenticeship Programs (IRAPs) scheme, investing in registered apprenticeships and pursuing pro-labor policies that protect workers from issues like heat exposure and create good, family-sustaining, union jobs. Her emphasis on the union apprenticeship model is one that, once she is confirmed as secretary of labor, could benefit SMART for generations.

Deputy Labor Secretary Julie Su delivers remarks after her nomination to lead the Department of Labor by President Biden.
President Joe Biden looks on as Deputy Labor Secretary Julie Su delivers remarks on her nomination as Secretary of Labor, Wednesday, March 1, 2023, in the East Room of the White House. (Official White House Photo by Adam Schultz)

“Registered apprenticeship is one of the innovative and time-tested superhighways in the workforce development infrastructure, particularly for communities who have been excluded from good jobs for far too long,” Su said in 2022.

With Su and Walsh at the head of the Department of Labor, the United States’ economy experienced unprecedented growth, including the addition of 12.6 million jobs and the lowest unemployment rate in 50 years. This success, as well as years of working with employers and employees alike to pursue mutual prosperity, has led to Su’s nomination being endorsed by business groups like Small Business Majority and the Los Angeles Chamber of Commerce, as well as labor unions like SMART, North America’s Building Trades Unions, the United Mine Workers of America, the International Association of Fire Fighters, the International Brotherhood of Electrical Workers and many more.

“She has demonstrated her willingness to stand with workers and SMART members since joining the Department of Labor, helping spearhead this administration’s focus on building an economy from the bottom up and the middle out,” Sellers concluded in his statement. “We look forward to working with her to advance the interests of our members and the working class, and we urge the Senate to swiftly confirm Julie Su as United States secretary of labor.”