Press Release: New Enforcement Tools Strengthen Construction Labor Market

(DENVER) -With new enforcement tools, the Colorado Department of Labor and Employment's (CDLE) Division of Labor Standards and Statistics (DLSS) found many employers in construction illegally misclassify drywallers and framers as independent contractors, not employees. Doing so denies these employees basic rights, including:

• overtime premium pay - reflecting the personal toll and safety risk of long hours;
• rest and meal breaks - which are critical for worker health and well-being; and
• critical health and safety net benefits - unemployment insurance, paid sick leave, family and medical leave, health insurance, and more.

DLSS has always investigated complaints, ordering payment of wages and penalties due. It more recently has launched "Direct Investigations" tackling workplace-wide violations against dozens, hundreds, or thousands of employees -yielding findings, orders, and settlements like these (public records of concluded investigations linked):

• Two subcontractors with pervasive violations, Super Mario Construction and Excel Drywall, shut down once DLSS ordered reforms and payments to workers - improving the market by diverting work to more compliant competitors.
• After DLSS investigated and offered compliance guidance, major subcontractors Randy's Drywall Services (RDS) and Interior Contractors Inc. (ICI) agreed to reclassify their workers as employees and pay all wages due. "ICI views itself as a corporate partner to the Colorado Division of Labor Standards and Statistics and is committed to not associating with any subcontractor who does not pay their workers in compliance with Colorado wage law," an ICI representative said.
• After not fixing multiple major violations including misclassification, another large subcontractor, Diversified Builders Inc. (DBI), was ordered to reclassify workers and pay $1 million in fines, plus back wages in sums to be determined by ongoing investigation of DBI debts and assets, including of customer payments.

DLSS orders have been strengthened by new enforcement tools granted in the past year. Now, if an employer doesn't pay what DLSS orders:

• Victims can be paid from the state Wage Theft Enforcement Fund - with well over $500,000 in initial payments expected by late 2024.
• Assets such as physical items, bank accounts, debt from customers in addition to personal assets of incorporated businesses' owners, can be seized quickly.

"When wage theft, misclassification or other illegalities spread enough to darken any corner of the labor market, they drag honest businesses into a 'race to the bottom' presenting an ugly choice: lose business to unscrupulous competitors, or join their illicit ranks," said DLSS Director Scott Moss. "Shady subcontractors and staffing suppliers also embroil even the most law-abiding clients into investigations and seizures."

"We're pleased our work is creating fairer labor markets for workers and businesses alike. DLSS' work is helping more employers offer quality jobs that make construction a strong career option for Coloradans, as well as newcomers, seeking opportunities in our growing economy," said CDLE Executive Director Joe Barela, echoing the CDLE mission: "A working economy that elevates all of Colorado."

CDLE offers extensive resources for both workers and businesses wishing to be sure they, their subcontractors and their competitors are compliant with labor law:

• Find detailed guidance on wages and hours (INFO #1-3, 16, 20), breaks (#4), retaliation (#5), and misclassification (#10), plus "know your rights" one-pagers (KNOWLEDGE #1-3), at cdle.colorado.gov/INFOs - in English or Spanish.
• Ask questions, or request a business, labor, or community group presentation, at [email protected] or 303-318-8441 - in English or Spanish.
• A worker or business with illegal competition can complain, or send anonymous tips, at ColoradoLaborLaw.gov or LeyesLaboralesDeColorado.gov.
  

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