State legislation that would strengthen worker protections in Maryland by combatting wage theft and increasing accountability among construction contractors is moving forward in the state’s General Assembly.
The bill – HB1096 “An Act Concerning Fraud Prevention and Worker Protections – Prohibitions, Penalties, and Enforcement” – creates a “Worker Protection Unit” within the Office of the Attorney General. The legislation provides the AG’s office with the power to conduct investigations to determine compliance with workers’ rights laws. It also gives the AG’s office the resources it needs to go after bad actors.
The bill is cross-filed with SB0938 in the state Senate.
“Our industry has been rocked by the prevalence of wage theft in the market,” wrote Baltimore-D.C. Metro Building Trades Council President Greg Akerman in testimony submitted to the House Economic Matters Committee at the end of February. “In addition to the human toll, responsible companies struggle to stay afloat in a competitive environment when competing against bad actors.”
Wage theft is a widespread problem in the construction industry. It can take many forms, including:
- Failure to pay workers on time at their promised wage.
- Unpaid overtime premiums.
- Failure to pay prevailing wages.
- Misclassification of workers as independent contractors.
“Wage theft complaints have emerged on projects across the state of Maryland,” added Akerman, “including hospitals, schools, critical infrastructure, and others. The Office of the Attorney General should have all the resources and tools at its disposal to be able to directly address complaints of wage theft and punish bad actors.”
Our industry has been rocked by the prevalence of wage theft in the market. In addition to the human toll, responsible companies struggle to stay afloat in a competitive environment when competing against bad actors.”
Greg Akerman
President
Baltimore-DC Metro Building Trades Council
A recent study found that Maryland leads U.S. states in wage theft violations. The study analyzed U.S. Department of Labor data and calculated that companies in Maryland committed 12,639 wage theft violations over the past three years, with an average of $2,221 in back wages owed per employee.
In his testimony, Akerman also recognized the “great strides” the state Department of Labor and Industry has made in addressing the issue of wage theft in recent years.
“The collaboration of state agencies and the Office of the Attorney General,” wrote Akerman, “is vital to combat wage theft, ensure good contractors are positively rewarded, and, perhaps most important to legislators in this trying time, ensure Maryland is tapping every available revenue resource. This legislation promises to do so without inconveniencing working people or responsible businesses.”