By James Lomuscio
From carpentry to masonry to electrical and general contracting, 19 companies at six construction sites in Westport were ordered to stop work in late July, the state Department of Labor’s (DOL) Division of Labor and Workplace Standards announced today.
A new cosmetics store at 22 Main St., former site of Katzenberg Cafe, was among Westport construction sites targeted. (CLICK TO ENLARGE) Dave Matlow for WestportNow.com
The reason: the companies had listed their workers as independent contractors to avoid taxes, workers compensation, unemployment taxes and other expenses, according to the DOL.
The Westport crackdown was among 103 stop-work orders issued statewide over the past six months as the DOL has been performing spot checks in communities with construction activity, said Gary Pechie, director of the DOL’s Division of Labor and Workplace Standards. The DOL commissioner, Glenn Marshall, is former head of the Fairfield County carpenters’ union.
Resa Spaziani, DOL supervisor who works for Pechie, said the spot checks were made via contacting municipal building departments. Most were random visits, she said, and others were in response to complaints from workers and unions.
“We did our investigations town by town,” Spaziani said. “I think that we’re looking at it more and more than it was looked at previously.
“I believe there’s a competitive advantage for these companies to come in an underbid legitimate companies out of jobs,” she added. “They they wind up with a 33 percent advantage over companies that are paying the correct taxes and workers compensation.”
Westport sites issued stop work orders were 10 Church Lane, 1505 Post Road East, 69 Main St, 22 Main St., 71 Main St. and 19 Post Road East. All were fined $300 per day for failing to have the right classifications, the DOL said.
Spaziani said that several contractors at the Westport locations were allowed to resume work within a week after they made proper classification.
They included Shelton-based Frank Marini Mason Contractor working at 10 Church Lane; Trumbull-based ADK Electric and out-of-state general contractor Retail Store Construction at 1505 Post Road East; Westport-based Scott Rochlin General Contractor at 19 Post Road East; New York-based Exceed Construction Carpentry at 69 Main St., and HF Drywall at 71 Main St.
The site at 10 Church Lane owned by developer David Waldman was among the sites receiving stop work orders. (CLICK TO ENLARGE) Dave Matlow for WestportNow.com
“A company can come back once they comply with state law,” she said citing the Church Lane property which is part of the complex being developed by local developer David Waldman. “But some will never come back, and they (the property owners) will have to hire a new contractors.
“Some will not come back because they realize they would not be able to do the work at that price,” she added. “Some of them did have day laborers, and they probably are undocumented. And, the majority said they were being paid cash.”
Over the past six months the DOL has collected more than $81,000 in fines from such companies.
Marshall, the DOL commissioner, was also the district business manager for New England Regional Council of Carpenters and the treasurer of its political action committee.
He testified last year at the General Assembly in favor of legislation increasing fines on employers who misclassify employees as subcontractors to avoid paying workers’ compensation and unemployment compensation.
