![]() Dangerous worksites can create serious risk for pedestrians, drivers, and people nearby, as a harrowing 32-second video of the Hard Rock collapse demonstrates. Companies commit payroll fraud by paying workers “off the books” this saves them money and results in underpayments for workers, unfair competition for law-abiding businesses, and underfunding of public treasuries and worker compensation funds.įissured construction sites can also pose a more direct threat to the public. Wage theft and payroll fraud are also common in construction, from California to Colorado to Washington, D.C. Yet a few weeks ago, the alleged trafficker was again working for the same developer, who-in a Groundhog Day move-again denied knowledge and blamed a subcontractor.Ĭonstruction is one of the most dangerous industries, accounting for more than 20 percent of the 4,674 private-sector worker fatalities in 2017. An ongoing case in Minnesota involves a labor broker accused of human trafficking the developer denied knowledge of the allegations and blamed a subcontractor for hiring that broker. General contractors are often similarly lax, although they can be found liable under OSHA regulations and sometimes other laws. Accordingly, they often have little or insufficient incentive to monitor the subcontractors’ compliance with employment laws and safety regulations on job sites, which can lead to serious abuses. Fissuring results in degraded labor conditions: Each layer has to take a cut, leaving less money for the actual work also, moving down the chain, one often finds scofflaw companies and contractors who cut corners.ĭevelopers are generally off the hook legally if workers on construction sites are mistreated or harmed. But this site was typical of today’s construction industry, which itself exemplifies what Obama labor official David Weil has called the “ fissured workplace”: Companies avoid employer obligations by subcontracting, franchising, using temp agencies, or treating their workers as independent contractors. Notably, Local 130 of the International Brotherhood of Electrical Workers protested and leafletted at the job site last month, alleging that electrical workers onsite lacked licensing and training, and were mischaracterized as independent contractors.Įventually, the facts will emerge about what caused the collapse. Local newspapers reported that the site had 50 different subcontractors and vendors. The developer pledged to work with law enforcement and the general contractor to find out what happened it also offered prayers and sympathies for the victims. In this instance, Hard Rock International issued a statement expressing its sympathies and stating that it had no involvement in the construction of the project, naming the developer, Kailas Companies, and the general contractor, Citadel Builders LLC. When things go wrong for workers on construction sites, here’s what too often happens: The developer disclaims responsibility, pointing a finger at the general contractor, who in turn points to a subcontractor, and on and on, until finally there’s someone relatively powerless (and cashless) at the bottom of the totem pole who will ultimately be blamed. It makes clear the magnitude of the changes needed to keep construction workers and surrounding communities safe. The Hard Rock disaster illustrates the Wild West that too many construction sites have become over the past decades. We also know that in the normal course of events, well-run construction sites don’t suddenly crash to the ground. We do know that the collapse of the half-completed building killed two people and injured 30, with one more still missing. We don’t know why New Orleans’s Hard Rock Hotel collapsed last Saturday. A large portion of the Hard Rock Hotel in New Orleans, which was under construction, suddenly collapsed on October 12, 2019. ![]()
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