Unions want State to ban Certain Independent Contractors over Potentially Trifling Issues

Construction SiteMany independent contractors may be prohibited from working on public projects in Minnesota if a union-backed bill passes this year.

The bill (HF1984/SF1919) is termed a “Responsible Contractor” bill, and seeks to prohibit companies from working on government construction projects if they have had have had even minor, accidental or rectified violations of certain statutes in the past.

The big construction unions are pushing this legislation to allow government to reject contracts from certain companies who have paid back-wages of $10,000 or more in the past three years, even if the back-payments were completely voluntary.

The need to make back-payments can occur through accounting errors (in mid-to-large firms, $10,000 can easily be attributed to rounding errors), work classification confusion and other complex compliance issues or labor disputes. Under the new law if a company voluntarily makes back-payments of $10,000 or more over a three-year span, they can be banned from public work for five years.

The reality is, this legislation is an attempt to hamper non-union and smaller competitors.

More regulation and paperwork doesn’t usually impact larger firms, but it can be prohibitive to smaller competitors and the big companies know this.

This legislation was developed by the unions in a misguided effort to close out certain non-union companies from government contracts, but it may come back to bite some unionized companies as well.

Any company that does significant public work can be thrown out for relatively small errors, even if voluntarily rectified.

This is ill-considered legislation. It’s bad for Minnesota businesses, bad for taxpayers and bad for jobs.

Please write your legislators today and ask them to oppose HF1984 and SF1919. This legislation will increase the cost of government and harm responsible contracting businesses in Minnesota.

2 Responses to Unions want State to ban Certain Independent Contractors over Potentially Trifling Issues

  1. Perplexed March 6, 2014 at 11:36 am #

    What?? a bill making imperfection and learning from mistakes to correct to prevent is unlawful? Unions need to accept the fact they’re no longer productive unless called upon. They’ve become against the working class and more for the government class also working against the working class through another government agency NLRB using various policies that hinder the private market. Adding adolescent mentality to call it a bill to cheat in competition is making Minnesota pretty pathetic looking! For some reason democrats are shameless. The undisciplined democratic political party looks for the most expensive, most burdensome, most belittling way to govern this state! Stop this immaturity. Look at this state! Who are these people to put “responsible” on anything? Didn’t take the responsibility to have safe roads for the President? A private business would’ve!

  2. pally March 14, 2014 at 6:14 pm #

    time to deport the violence that immigrated here, ELLISON!

Leave a Reply