Billion Dollar Highway Bill Passed by Congress, Directly Benefits Construction

Congress passed a bill that provides funding for key infrastructure over the next five years. President Obama is expected to sign the $305 billion highway bill.
The five year bill allows for spending of around $205 billion on highways and $48 billion on transit projects. It is also the first transportation funding legislation to last longer than two years since 2005.

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ACT Ohio Executive Director Testifies Before Ohio House

Matt Szollosi, Executive Director of ACT Ohio, testified on Tuesday in the Ohio House of Representatives in opposition to House Bill 394. In its current form, the bill aims to eliminate a $775 million dollar deficit and create a solvent unemployment trust fund balance, but fails to take into account several provisions that would be harmful to the construction industry.

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Ohio Sees Decreased Unemployment for the Month of October

The Department of Job and Family Services reported that Ohio gained 30,800 jobs over the month of October (from 5,396,400 in September to 5,427,200). The number of unemployed workers fell by 5,000 (to 249,000), causing the unemployment rate to drop to 4. 4%. These rates are part of a trend over the past 12 months, where the unemployment rate has dropped from 5.2% and the number of unemployed has decreased by 51,000.

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Louisiana Contractors: Breaking the Law at Taxpayers’ Expense

ACT Ohio’s recent blog post discussed the efforts by the U.S. Department of Labor to crack down on independent contractor misclassifications. A recent investigative study done by Fox 8 in New Orleans, exposed how important these classifications are and how they can dramatically impact an entire state.
There are rampant misclassification of employees as independent contractors occurring in the state of Louisiana, which is costing taxpayers at least $250 million annually according to the Fox 8 investigative report.

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U.S. Department of Labor Prioritizes Independent Contractor Misclassifications

The U.S. Department of Labor (DOL) has declared that independent contractor misclassifications will be a top enforcement priority. The DOL seeks to offer guidance and to broaden the definition of employment under the Fair Labor Standards Act. Wage and Hour Division (WHD) Administrator David Weil claims that independent contractor misclassification is found in an “increasing number,” of workplaces and this broader definition will help address this issue.

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Ohio Contractor Indicted for Failing to Pay Prevailing Wage

A federal grand jury has indicted a Cleveland contractor for violating the federal Davis-Bacon Act and paying criminally low wages to employees.
Marcus Butler, owner of L& B Electric of Northeast Ohio, faces 61 counts of making false statements to a government agency. Prosecutors say Butler lied on tax forms between 2011 and 2013, claiming to have paid his employees $126,514.80 more than he actually had. The specific rate of pay employees received was not specified, yet the indictment called it “substantially less,” than required by law.

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Demand for Skilled Labor Increases as Ohio Building Projects Expand

As demand for new infrastructure grows in Ohio and nationwide, the demand for skilled labor also rises. According to a recent survey of 1,358 contractors nationwide (26 contractors in Ohio), 86% were having trouble filling positions with qualified workers, which is a 3% increase from last year.

Of the Ohio contractors, 95% said they were having trouble filling positions. As a result, many have increased base pay rates and benefits in an effort to attract talent. Some contractors are attempting to offer their competitors workforce additional compensation to work for them instead.

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