Report: Charter schools have lost $30 million since 1997
Times Online - October 2, 2014, by JD Prose - A day after Pennsylvania Cyber Charter School founder Nick Trombetta was in a federal courtroom as part of his ongoing criminal...
Times Online - October 2, 2014, by JD Prose - A day after Pennsylvania Cyber Charter School founder Nick Trombetta was in a federal courtroom as part of his ongoing criminal case, a new report cited him as an example of $30 million in fraud and financial mismanagement among Pennsylvania charter schools since 1997.
The report, “Fraud and Financial Mismanagement in Pennsylvania’s Charter Schools,” was done by three organizations, the Center for Popular Democracy, Integrity in Education and Action United.
It piggybacks on a national report on charter schools in May by the Center for Popular Democracy and Integrity in Education that claimed more than $136 million has been lost to waste, fraud and abuse by charter schools.
The Pennsylvania Coalition of Public Schools issued a statement saying allegations of fraud must be investigated.
“However,” the statement continued, “the report draws sweeping conclusions about the entire charter sector based on only 11 cited incidents in the course of almost 20 years, while ignoring numerous alleged and actual fraud and fiscal mismanagement in the districts over the same time period, which dwarf the charter school allegations in terms of alleged misuse of taxpayer dollars.”
To stem the loss of tax dollars by charter schools, the three nonprofit organizations make several recommendations, including annual fraud risk assessments, trained forensic auditors doing reviews, charter school authorizers doing comprehensive reviews every three years instead of every five years, and charter schools posting findings of internal assessments.
City and county controllers should also be authorized to perform fraud risk assessments and fraud audits on charter schools, the groups recommended.
They also suggested that the state attorney general’s office review all charter schools in Pennsylvania, that the Legislature pass a law to protect and encourage charter school whistle-blowers, and that the state declare a moratorium on new charter schools until reforms are implemented.
Trombetta, who faces 11 federal charges, including mail fraud and filing false tax returns, is cited as one example in the report. On Tuesday, he was in court trying to get recordings tossed in the case, in which he is accused of using various offshoots of PA Cyber to siphon away millions of taxpayer dollars.
The coalition said the report’s recommendations should be applied to traditional school districts as well as charter schools “in the name of intellectual integrity.” If not, it would just be an example of pursuing a political agenda, the coalition said.
Not surprisingly, the president of the National Education Association issued a statement trumpeting the report’s findings and blasting charter school supporters, especially Gov. Tom Corbett. “It’s time for lawmakers to stop providing charter industry players a blank check with little oversight and no accountability,” said Lily Eskelsen Garcia.
“Pennsylvania Gov. Tom Corbett and other politicians in the state continue to push for privatization, despite compelling evidence of fraud and abuse of taxpayer funds in the charter school industry,” Garcia said.
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Nearly 2,500 Bridges to Nowhere: Congress Considers Expanding Charter Program Despite Millions Wasted on Closed Schools
UPDATE July 15th -- Earlier this week, Senate Majority Leader Mitch McConnell (R-KY) invoked cloture on the ESEA bill, which contains provisions to...
UPDATE July 15th -- Earlier this week, Senate Majority Leader Mitch McConnell (R-KY) invoked cloture on the ESEA bill, which contains provisions to expand the Charter Schools Program. The final vote will be held today. McConnell's move to bring matters to a close came as a surprise to the authors of the bill who had expected a more robust debate, and, as EdWeek reports, "especially squeezes Democrats who are still working on proposals to beef up accountability."
As both the House and the Senate consider separate bills that would reauthorize and expand the quarter-billion-dollar-a-year Charter Schools Program (CSP), the Center for Media and Democracy (CMD) has examined more than a decade of data from the National Center for Education Statistics (NCES) as well as documentation from open records requests. The results are troubling.
Between 2001 and 2013, 2,486 charter schools have been forced to shutter, affecting 288,000 American children enrolled in primary and secondary schools.
Furthermore, untold millions out of the $3.3 billion expended by the federal government under CSP have been awarded as planning and implementation grants to schools that never opened to students.
Charters Much More Likely to Close
The failure rate for charter schools is much higher than for traditional public schools. In the 2011-2012 school year, for example, charter school students ran two and half times the risk of having their education disrupted by a school closing and suffering academic setbacks as a result. Dislocated students are less likely to graduate and suffer other harms.
In a 2014 study, Matthew F. Larsen with the Department of Economics at Tulane University looked at high school closures in Milwaukee, almost all of which were charter schools. He concluded that closures decreased “high school graduation rates by nearly 10%" The effects persist "even if the students attends a better quality school after closure.”
Hidden behind the statistics are the social consequences. According to a 2013 paper by Robert Scott and Miguel Saucedo at the University of Illinois. They found that school closures “have exacerbated inter-neighborhood tensions among Chicago youth in recent years” and have been a contributing factor to the high rate of youth incarceration.
Because the U.S. Department of Education does not provide the public with any accounting for the amount of taxpayer money—whether state or federal—that has been spent on these failed charter schools, there is no way to estimate the total amount of money missing in action. However, the Center for Popular Democracy (CPD) recently estimated that "according to standard forensic auditing methodologies, the deficiencies in charter oversight throughout the country suggest that federal, state and local government stand to lose more than $1.4 billion in 2015."
Major Probes into Closed Charters Underway
According to a PowerPoint presentation CMD has uncovered, the watchdogs at the U.S. Department of Education's Office of the Inspector General are currently conducting major nationwide probes into the lack of accountability and oversight within the Charter School Program. One of these audits focuses on where federal grants end up when charter schools are forced to close. A spokesperson for OIG confirmed to CMD that these investigations are ongoing.
The new probes come in the wake of a scathing 2012 audit, which exposed an utter lack of financial controls in the case of money awarded to charters that later closed. “The school files had no follow-up documentation for any of the 12 closed schools reviewed,” the OIG noted in the case of California. The U.S. Department of Education had conducted no oversight and failed to ensure that states receiving tens or hundreds of millions in grants had “procedures to properly account for SEA grant funds spent by closed charter schools.”
Meanwhile, U.S. Department of Education officials have assured stakeholders that the problems with millions disappearing down black holes are now a thing of the past. But the fact that the OIG has found reason to launch major investigations this year tells a different story.
Federal Millions Missing in Action as Charter Close or Never Open
It is impossible to anticipate the findings of the ongoing OIG probes, but even a cursory review of federal charter school grants in Wisconsin and Indiana, conducted by CMD, uncovered dozens of schools that were created out of seed money under the program but later forced to shutter because of financial mismanagement, failure to educate students or lack of enrollment.
Wisconsin received $69.6 million between 2010 and 2015, but out of the charters awarded sub-grants during the first two years of the cycle, one-fifth (16 out of 85) have closed since.
Indiana was awarded $31.3 million under the Charter Schools Program between 2010 and 2015. One of the reasons the state landed the grant, the reviewers contracted by the U.S. Department of Education to score the application make clear, was that charter schools in the state are exempt from democratic oversight by elected school boards. “[C]harter schools are accountable solely to authorizers under Indiana law,” one reader enthuses, awarding the application 30/30 on the rubric “flexibility offered by state law.” This “flexibility,” which the federal program is designed to promote, has been a recipe for disaster:
The Indiana Cyber Charter School opened in 2012 with $420,000 in seed money from the federal program. Dogged by financial scandals and plummeting student results the charter was revoked in 2015 and the school last month leaving 1,100 students in the lurch.
Padua Academy lost its charter in 2014 and converted to a private religious school, but not before receiving $702,000 in federal seed money.
Via Charter School was awarded $193,000 in a “planning grant” but never opened.
Early Career Academy landed a $193,000 planning grant and was due to open last year. This has been postponed because of “governance issues,” according to the school. The charter is sponsored by a for-profit college—ITT Tech—that is currently being sued by federal government for coercing students into taking out student loans for college credits that do not transfer.
In April 2015, Education Secretary Arne Duncan testified in front of the Appropriations Subcommittee on Labor, Health & Human Services and Education on abuse of federal funding by for-profit colleges, such as ITT Tech, that were “taking advantage of a massive influx of taxpayer resources.”
“The findings that we are putting forward are pretty stunning…pretty egregious. The waste of taxpayer money—none of us can feel good about,” said Duncan.
And yet, he is calling for a 48 percent expansion of the charter schools program—a program that will likely be up for the vote in the House and Senate this week, before the results of any of the OIG audits are made public to lawmakers and stakeholders.
CMD will soon be releasing the full dataset, as well as information on the methodology used to arrive at the list of closed schools, to help reporters and public school advocates tell the story.
Source: PR Watch
Contractors and Workers at Odds Over Scaffold Law
New York Times - December 17, 2013, by Kirk Semple - In 1885, as new engineering inventions were ushering in the era of the skyscraper, lawmakers in New York State...
New York Times - December 17, 2013, by Kirk Semple - In 1885, as new engineering inventions were ushering in the era of the skyscraper, lawmakers in New York State enacted a law intended to safeguard construction workers who were finding themselves facing increasing dangers while working at ever-greater heights.
That measure, which became known as the Scaffold Law, required employers on building sites to ensure the safety of laborers working above the ground. Since then, some form of the legislation has remained on the books despite repeated attempts to repeal it.
But a lobby of contractors, property owners and insurers has in recent months renewed a campaign against the law, arguing that no less than the future of the state’s construction industry is at stake.
They argue that the law is antiquated and prejudicial against contractors and property owners, and essentially absolves employees of responsibility for their own accidents, leading to huge settlements. The payouts, they contend, have in turn led to skyrocketing insurance premiums that are hampering construction and the state’s economic growth.
On Tuesday, a coalition of contractors, including a newly formed alliance of firms owned by women and minorities, announced the start of an advertising and lobbying blitz in Albany and New York City. But a counter-lobby of unions, workers’ advocates and trial lawyers is pushing back just as fiercely. The law, they argue, is essential to ensuring the safety of workers in some of the world’s most dangerous jobs, particularly those employed by shoddy contracting firms that cut corners to save money. The law, they say, holds developers and contractors accountable for keeping job sites safe.
Gov. Andrew M. Cuomo this week acknowledged the politically loaded atmosphere surrounding the Scaffold Law, but suggested that he was open to the possibility of modifying the law.
The law states that contractors and property owners are responsible for ensuring that scaffolds, hoists and other devices that enable aboveground building construction and repair “shall be constructed, placed and operated as to give proper protection to a person so employed.”
When injuries result from a violation of those terms, the law says, contractors and owners are liable. There is no mention of worker responsibility. Under the law, however, the plaintiff still must show that a violation of the law’s standards occurred and that the violation caused the injury.
But those seeking to change the law want to incorporate a standard of “comparative negligence.” This amendment — described in a state bill submitted earlier this year — would require a jury or arbiter to consider whether the liability of the defendants, and thus the amount of damages, should be reduced for cases in which the worker’s negligence or failure to follow safety procedures contributed to the accident.
Opponents argue that the amendment would reduce the incentive for the property owner and contractors to take necessary safety precautions.
“This law protects both union and nonunion workers and creates a sense of accountability on these job sites,” said Gary LaBarbera, president of the Building and Construction Trades Council of Greater New York, an umbrella group for unionized construction workers. “If the law was modified, the workers would lose their voice.”
But those seeking to alter the law say the amendment would not eliminate the owners’ and contractors’ motivation to keep their workplaces safe because they would still face the possibility of shouldering large payouts, even if they were found only partly responsible for an accident.
“The notion that a contractor or owner would want to do anything to undermine the safety of the worker on the job doesn’t make sense,” said Pamela Young, associate general counsel of the American Insurance Association.
Workers’ advocates argue that erosion of the Scaffold Law would have a disproportionate impact on minority and immigrant laborers, who, the advocates say, are more likely to work for nonunion companies that may not provide proper safety training and equipment.
Immigrants, the advocates said, are less likely to speak the same language as their bosses on a job site and more likely to fear being fired if they demand a safer workplace.
From 2003 to 2011, federal safety regulators investigated 136 falls “from elevation” that killed workers on construction sites in New York, according to a recent report by Center for Popular Democracy, an advocacy group. Of those workers, about 60 percent were Latino, foreign-born or both. That rate rose to 88 percent among fatal falls in New York City.
Some trial lawyers have been effective at using the law to secure large settlements. Of the 30 largest settlements in 2012, at least 14 were in cases brought under state labor laws and most of those involved falls from ladders or scaffolding, according to The New York Law Journal. The awards ranged from $3 million to $15 million.
Weislaw, a Polish immigrant, was the plaintiff in a liability case that was settled last month. (He spoke on the condition that his surname not be used in this article, out of concern for his privacy.) He had been part of a crew repairing the roof of a one-story public school building in Long Beach, on Long Island. While he was working on the roof one spring day in 2010, he was concentrating so hard on his task that he lost track of the edge of the roof and fell, he said, suffering multiple fractures.
“I will most likely never be able to return to work,” he said.
Weislaw filed a lawsuit under the Scaffold Law arguing that he had not been provided with proper protection, such as a safety line or a spotter.
The case settled for $2.7 million, said David Scher, a lawyer from the firm that represented him.
Critics of the Scaffold Law say the way it is written makes these sorts of cases easy to win.
“It’s a gold mine for the plaintiffs’ bar,” said Mike Elmendorf, president and chief executive of Associated General Contractors of New York State. “When you get one of these cases, it’s largely about how much it’s going to cost.”
These high payouts, he and others contend, have driven up insurance rates, knocking smaller contractors, particularly those run by minorities and women, out of business and forcing others to suspend work, costing thousands of jobs.
They argue that the impact is as high on government projects as it is on private ones, and that the soaring cost of liability insurance is forestalling the repair and construction of public works projects, such as schools, bridges and roads. The New York City School Construction Authority said in a statement on Monday that its liability insurance costs for 2014 would be nearly as much as those for the three-year period from 2011 to 2013.
But in recent weeks, the law’s defenders have employed a new gambit, demanding that the insurance companies open their accounting ledgers to prove whether the Scaffold Law is, in fact, responsible for the rate increases. Insurance executives have vowed to fight any demands to disclose proprietary information that might somehow undermine their competitive advantages.
State Assemblyman Francisco P. Moya, a Democrat who represents a heavily immigrant and Latino area of Queens, said he planned to submit a bill that would expand reporting requirements for insurance companies and help lawmakers assess whether the Scaffold Law needed to be changed.
“Show us how much the payouts are,” Mr. Moya said. “Once we see that, we’ll have a better understanding.”
Source
Systemic Fraud Found In GOP-Endorsed Charter Schools
Atlas Left - May 24, 2014, by Josh Kilburn - The House of Representatives recently passed a bill that would grant $3 million in taxpayer money to charter schools; schools that both Democrats and...
Atlas Left - May 24, 2014, by Josh Kilburn - The House of Representatives recently passed a bill that would grant $3 million in taxpayer money to charter schools; schools that both Democrats and Republicans are lining up behind. In the wake of this, Ring of Fire took a critical eye to some of the rampant abuses in the system with guest and Bill Moyers.com senior digital producer, Joshua Hollands, present to help explain what it meant.
While discussing how abused the system is, Joshua Holland referenced a report by Integrity in Education and the Center for Popular Democracy in regards to the systematic abuse and waste in charter schools:
[They found] in fifteen states, just fifteen states they looked at, they found $140 million dollars in public funds that were lost to fraud, waste, and abuse . . . This is all taxpayer money, so, that’s right. What they found, for example, was using public education dollars, these private operators were using them to prop up other businesses. There was an incident where somebody was feeding these public dollars into their health food store. In another instance, there was somebody who was using these dollars to make repairs on their apartment complex that they’d rented out. This again is somewhat unsurprising given that you have such limited oversight.And the reason for that limited oversight? Charter schools try to have it both ways; when it comes to public money, they’re suddenly public institutions. When it comes to public oversight, they change the color of their scales and become private institutions with “proprietary secrets.”
There are other problems as well; charter school teachers are paid less than public school teachers, administrations are paid more, and they’re less likely to be unionized than public school teachers. And that’s the union busing angle: the private sector unionization is at an all time low — only 7%. The majority of unionized workers are in the public sector, which is what the big businesses are targeting in an systematic, widespread anti-union, anti-worker putsch to restore our nation to the gilded glory days of the 1870s and 1880s.
Our public schools are not the problem. In wealthy districts, the public schools are top in the world as far as reading, writing, and other testing goes. It’s only in the poorer districts, where childhood poverty is rampant, that we find the lower numbers pulling down the average. Since “we tolerate a high level of childhood poverty relative to other nations,” in the words of Joshua Holland, and poor children don’t preform as well as their wealthy counterparts do, low test scores should come as no surprise. Out of 35 nations tested, the United States rates 34 in child poverty; the only country below us is Romania. And until we do something about the rampant poverty, instead of blaming it on the teachers, the problem won’t be going away.
Source
Promueven petición contra Wells Fargo y JPMorgan por “financiar el dolor” de inmigrantes
Promueven petición contra Wells Fargo y JPMorgan por “financiar el dolor” de inmigrantes
La petición cuenta con el respaldo de más de 70 organizaciones bajo el paraguas de la coalición #FamiliesBelongTogether, que incluye a Presente.org, la Unión de Libertades Civiles de EEUU (ACLU),...
La petición cuenta con el respaldo de más de 70 organizaciones bajo el paraguas de la coalición #FamiliesBelongTogether, que incluye a Presente.org, la Unión de Libertades Civiles de EEUU (ACLU), MoveOn.org, Amnistía Internacional, la Alianza Nacional de Trabajadoras Domésticas, MomsRising, Center for Popular Democracy, y Make the Road New York, entre otras.
Lea el artículo completo aquí.
US lawmaker welcomes plan to aid Caribbean immigrants
Guardian - July 22, 2013 - Caribbean American Congresswoman Yvette D Clarke has welcomed a plan by New York City (NYC) to aid undocumented Caribbean immigrants. NYC officials say the city will...
Guardian - July 22, 2013 - Caribbean American Congresswoman Yvette D Clarke has welcomed a plan by New York City (NYC) to aid undocumented Caribbean immigrants. NYC officials say the city will spend US$18 million to help undocumented Caribbean and other immigrants find jobs. City council speaker Christine Quinn, a mayoral candidate, said the money will fund adult education classes and legal services that the US federal government requires immigrants to take to qualify for the Deferred Action for Childhood Arrivals programme.
The New York Immigrant Family Unity Project will provide free legal services to immigrants threatened with deportation who are unable to represent themselves in proceedings. “New York has always been a city of immigrants within a nation of immigrants,” said Clarke, the daughter of Jamaican immigrants, who represents the 9th Congressional District in Brooklyn.
“Under this programme, thousands of immigrants in Brooklyn and other parts of the city will finally have an opportunity to challenge the deportation proceedings that separate families and weaken communities,” she said.
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Black Lives Matter Releases Policy Demands, Includes Reparations And Abolishing The Death Penalty
On Monday, more than 60 organizations associated with the Black Lives Matter movement released a series of policy demands, including free access to higher education, reparations, and an end to...
On Monday, more than 60 organizations associated with the Black Lives Matter movement released a series of policy demands, including free access to higher education, reparations, and an end to capital punishment.
According to the New York Times, these demands come on the heels of the second anniversary of Michael Brown’s death and after both the Democratic and Republican National Conventions.
“Our grievances and solutions extend beyond the police killing of our people; state violence includes failing schools that criminalize our children, dwindling earning opportunities, wars on our trans and queer family that deny them of their humanity, and so much more,” Montague Simmons of Organization for Black Struggle and the Movement for Black Lives Policy Table, said in a statement. “That’s why we united, with a renewed energy and purpose, to put forth a shared vision of the world we want to live in.”
The plan, titled “A Vision for Black Lives: Policy Demands for Black Power, Freedom and Justice,” offers up six core demands and 40 policy priorities, NBC News noted. They include:
Ending the War on Black People: This includes abolishing the death penalty, mass surveillance in communities of color, the privatization of police, violence against all Blacks (including Black trans, queer and gender nonconforming people) and using a past criminal history as a means to seek a job, housing, license and voting rights.
Reparations: To address the past and current harms that slavery, Jim Crow, and mass incarceration have done to the Black community, BLM is seeking reparations for the wealth extracted from our communities, guaranteed livable income and free access and open admissions to public community colleges, universities, and technical schools, to name a few.
Invest-Divest: Instead of federal, state, and local monies being invested into prisons, police, surveillance, and exploitative corporations, BLM would rather see that invested into long-term safety strategies such as education, local restorative justice services, employment programs, and universal health care.
Economic Justice: This is calling for Black communities to have real collective ownership of wealth in the U.S. This could be achieved with restructuring tax codes, creating federal and state job programs that specifically target the most economically marginalized Black people, breaking up large banks and ensuring better protection for workers.
Community Control: This would include the end of the privatization of education and making sure communities have the power to hire and fire officers, determine disciplinary action, control budgets and policies, and subpoena relevant agency information when needed.
Political Power: To ensure that real democracy can be achieved for all Black people, BLM wants for all political prisoners to be released, eliminating Super Pacs that fund candidates, ensuring election protection, early registration at the age of 16, full access to technology and the internet, and increased funding to HBCU’s.
Marbre Stahly-Butts, who is part of the leadership team of the Movement for Black Lives Policy Table, told the Times that neither Hillary Clinton or Donald Trump have truly made strides to address these issues in their prospective campaigns.
“On both sides of aisle, the candidates have really failed to address the demands and the concerns of our people. So this was less about this specific political moment and this election, and more about how do we actually start to plant and cultivate the seeds of transformation of this country that go beyond individual candidates,” she said.
This plan also shows a sign of an evolution for the movement, which has been criticized in the past for not having a clear concise platform of how they want to usher in change. And now as the election continues, it’s about using these ideals to further hold the nation’s politicians accountable, Michaela Brown, communications director of Baltimore Bloc, stressed.
“We seek radical transformation, not reactionary reform. As the 2016 election continues, this platform provides us with a way to intervene with an agenda that resists state and corporate power, an opportunity to implement policies that truly value the safety and humanity of black lives, and an overall means to hold elected leaders accountable,” she said in statement.
We hope all these leaders are paying close attention.
By KELLEE TERRELL
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Poor People’s Campaign Training Attacked by Pepper Spray
Poor People’s Campaign Training Attacked by Pepper Spray
You can help. Donate so organizers can hire peace monitors to protect their meeting spaces. The Center for Popular Democracy has agreed to raise the money on their behalf all proceeds from this...
You can help. Donate so organizers can hire peace monitors to protect their meeting spaces. The Center for Popular Democracy has agreed to raise the money on their behalf all proceeds from this Crowdrise will go to support Alaska Grassroots Alliance.
Read the full article here.
Fast-Food Labor Organizers Plan Actions for April 15
ABC News - March 31, 2015, Candice Choi - Fast-food labor organizers say they're expanding the scope of their campaign for $15 an hour and unionization, this time with a day of actions including...
ABC News - March 31, 2015, Candice Choi - Fast-food labor organizers say they're expanding the scope of their campaign for $15 an hour and unionization, this time with a day of actions including other low-wage workers and demonstrations on college campuses.
Kendall Fells, organizing director for Fight for $15, said Tuesday the protests will take place April 15 and are planned to include actions on about 170 college campuses, as well as cities around the country and abroad.
At an event announcing the actions in front of a McDonald's in New York City's Times Square, organizers said home health care aides, airport workers, adjunct professors, child care workers and Wal-Mart workers will be among those turning out in April.
Terrence Wise, a Burger King worker from Kansas City, Missouri, and a national leader for the Fight for $15 push, said more than 2,000 groups including Jobs With Justice and the Center for Popular Democracy will show their support as well.
"This will be the biggest mobilization America has seen in decades," Wise said at the rally as pedestrians walked past on the busy street.
The plans are a continuation of a campaign that began in late 2012. The push is being spearheaded by the Service Employees International Union and has included demonstrations nationwide to build public support for raising pay for fast-food and other low-wage workers, although turnout has varied from city to city. Last May, the campaign reached the doorsteps of McDonald's headquarters in Oak Brook, Illinois, where protesters were arrested after declining to leave the property ahead of the company's annual meeting.
Fells, an SEIU employee, said April 15 was picked for the next day of actions because workers are fighting "for 15."
"It's a little play on words," he said.
Fells noted that while the push began as a fast-food worker movement, it has morphed into a broader push for low-wage workers and is now shifting into a social justice movement with the involvement of "Black Lives Matter" activists joining in in the April protests. Still, he said McDonald's Corp. remained a primary target.
"McDonald's needs to come to the table because they could settle this issue," he said.
In a statement, McDonald's said it respects people's right to peacefully protest, but added that the demonstrations over the past two years have been "organized rallies designed to garner media attention" and that "very few" McDonald's workers have participated.
In addition to the ongoing demonstrations, organizers have been working on multiple fronts to make the legal case that McDonald's Corp. should be held accountable for working conditions at its franchised restaurants. That finding is seen as critical in being able to negotiate with one entity on behalf of workers across the chain, rather than dealing with the thousands of franchisees who operate the majority of McDonald's more than 14,000 U.S. restaurants.
McDonald's and other fast-food chains have maintained that they're not responsible for hiring and employment decisions at franchised locations.
One closely watched case addressing the matter began this week, when the National Labor Relations Board began hearings on complaints over alleged labor violations at McDonald's restaurants. The board's general counsel had said last year that McDonald's could be named as a joint employer along with franchisees in the complaints.
The hearing is scheduled to resume May 26 and is set to be a lengthy legal battle. Whichever side loses is expected to appeal, with the possibility of the case eventually heading to the Supreme Court.
In a statement, McDonald's has said the board's decision to name McDonald's as a joint employer "improperly strikes at the heart of the franchise system."
"The SEIU put a target on McDonald's back more than two years ago; the Board has now joined in taking aim, and has done so by managing the McDonald's case in an unprecedented manner," the statement said.
Parsippany contractor fined $3.2M for underpaying immigrant labor
Parsippany contractor fined $3.2M for underpaying immigrant labor
New York City Comptroller Scott M. Stringer on Tuesday assessed $3.2 million in fines against a Parsippany-based contractor for cheating dozens of workers out of the prevailing wages and benefits...
New York City Comptroller Scott M. Stringer on Tuesday assessed $3.2 million in fines against a Parsippany-based contractor for cheating dozens of workers out of the prevailing wages and benefits they were owed under the New York State Labor Law.
K.S. Contracting Corp. and its owner, Paresh Shah, also will be barred from working on New York City and State contracts for five years.
“With President Trump taking clear aim at immigrants across the country, we need to stand up and protect the foreign-born New Yorkers who keep our city running. Every New Yorker has rights, and my office won’t back down in defending them,” Stringer said. “Contractors might think they can take advantage of immigrants, but today we’re sending a strong message: my office will fight for every worker in New York City. This is about basic fairness and accountability.”
K.S. Contracting was named as one of the worst wage theft violators in New York in a report by the Center for Popular Democracy in 2015. The majority of the workers impacted were immigrants of Latino, South Asian, or West Indian descent.
An Internet search produced two Parsippany addresses for K.S. Contracting, both listing Shah as the owner. The number listed for an office at 342 Parsippany Road has been disconnected. A woman answering a call to the other Parsippany location listed for the company, a residential address at 29 Phillip Drive, said no one by the name Paresh Shah was there, and "no contracting."
Paresh Shah is listed in New Jersey tax records as the owner at 29 Phillip Drive.
According to Stringer's statement announcing the penalties, K.S. Contracting was awarded more than $21 million in contracts by the City Departments of Design and Construction, Parks and Recreation, and Sanitation between 2007 and 2010. Those projects included the Morrisania Health Center in the Bronx, the 122 Community Center in Manhattan, the Barbara S. Kleinman Men’s Residence in Brooklyn, the North Infirmary Command Building on Rikers Island, Bronx River Park, the District 15 Sanitation Garage in Brooklyn, and various city sidewalks in Queens.
The comptroller’s office began investigating the company after an employee filed a complaint with the office in May 2010. The multi-year investigation used subpoenas, video evidence, union records, and city agency data to uncover a kickback scheme that preyed on immigrant workers.
Stringer's statement included a video shot with a hidden camera by a foreman on several of the aforementioned construction jobs. A comptroller's office spokesperson said the foreman, who was cooperating with authorities as a victim of the scheme, is seen handing $4,982 in cash to the K.B. manager in a car and asking the manager to count it. The manager then takes the cash out of an envelope and counts it.
According to the comptroller's office, the cash was the proceeds of paychecks distributed to workers, who then cashed the checks and gave it back to the foreman.
After a four-day administrative trial in May 2016, Stringer found that K.S. Contracting routinely issued paychecks to just half of its workforce and then required those employees to cash the checks and surrender the money to company supervisors. The Comptroller further found that those supervisors would then redistribute the cash to all of the employees on a jobsite, paying them at rates significantly below prevailing wages. Stringer added that the company falsely reported to city agencies that all employees on the job site who received checks were paid the prevailing wage.
Between August 2008 and November 2011, the company cheated at least 36 workers out of $1.7 million in wages and benefits on seven New York City public works projects, stringer said. K.S. Contracting reported that it paid its workers combined wage and benefit rates starting at $50 per hour but actually paid daily cash salaries starting at $90 per day.
The New York City Comptroller’s office enforces state and local laws which require private contractors working on New York City public works projects or those with service contracts with City agencies to pay no less than the prevailing wage or living wage rate to their employees.
When workers are underpaid, the New York City Comptroller’s office works to recoup the amount of the underpayment plus interest.
By William Westhoven
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3 days ago
3 days ago