IBEW, Local 134 Sues Communications Contractor for Employee Misclassification Violations

CHICAGO, April 27 /PRNewswire/ -- INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS, LOCAL 134 ("IBEW, Local 134") has filed a lawsuit against Northern Illinois Telecom, Incorporated ("NITEL") for violations of the Illinois Employee Classification Act seeking monetary penalties on behalf of NITEL employees and injunctive relief against the contractor for illegally classifying construction electricians and communication electricians as independent contractors.

The lawsuit, filed April 13, 2010, alleges that since January 2008, NITEL paid its communication electricians between $21 and $24 per hour.  During this time, NITEL worked on at least nine construction projects governed by the Illinois Prevailing Wage Act where the prevailing wage ranged from $45 to $52 per hour.  The suit alleges that NITEL failed to make any salary deductions for federal or state income tax, or any withholding for FICA or Medicare contributions.  NITEL also failed to make payments pursuant to the Illinois Unemployment Insurance Act and the Illinois Workers Compensation Act for these employees, the suit alleges.  

IBEW, Local 134 Business Manager Tim Foley said, "We discovered this contractor performing communication work on a school construction project in Cicero and after an investigation determined NITEL employees were paid nearly $30 below the prevailing wage without health care or pension benefits.  IBEW, Local 134 then established area standards pickets at the job site and provided information to the school board officials and general contractor establishing NITEL's violations of the Illinois Prevailing Wage Act."  NITEL was later removed from the project by the general contractor.  

"In these difficult economic times, Local 134 will not allow any contractors to take advantage of construction workers who may feel that working for any wage is better than not working at all," Foley said.  "We will use all the tools available to expose contractors misclassifying their employees.  When contractors fail to comply with federal and state employment laws, they unfairly compete against reputable contractors who employ our members," Foley said.

The lawsuit was filed by Hogan Marren, Ltd.

SOURCE Hogan Marren, Ltd.