February 19, 2010

The Texas Workforce Commission is a state agency responsible for investigating employee complaints against employers in Texas. One law the Commission administers is the Texas Pay Day Law, which addresses pay cuts of employee wages. The Commission’s summary of Texas law addressing retroactive wage cuts is found on its website. It states: “Reductions in the pay rate are legal, but should never be retroactive.” The Commission’s summary explains further that:

“Under the general common law, an employer must pay an employee according to the wage agreement that was in effect when the work was performed. If there is no written agreement, agencies and courts will use some variation of the "best evidence" rule to determine what the employer and employee "agreed" to when the employment relationship was formed. Whoever has the best evidence of the rate of pay and the method of pay will usually prevail on those points.”

On the Commission’s law library site here: you will find links to:

• a form for filing a complaint against an employer,
• instructions for filing a complaint,
• the full text of the Texas Pay Day Law;
  • Sec. 61.019 addresses criminal penalties for an employer’s failure to pay wages
  • Sec. 61.051 (c) explains the employee’s 180 day time limit for filing a claim

This posting provides links to general information provided to the public by the state of Texas. This posting is not legal advice or a legal opinion on the viability of any potential claims for retroactive wage cuts. If you have any questions we would suggest that you call the commission directly at the phone number they provide on their website: 1-800-832-9243 (within Texas only), (512) 475-2670 (outside Texas).

Cranewatchdog.com is not affiliated with the Texas Workforce Commission.

General Crane Employees
Reporting 6% Wage Cut

February 19, 2010

General Crane USA has implemented a 6% wage cut for its workers, according to multiple company employees who have contacted CraneWatchdog.com.

Sources report that on Thursday morning, February 4, General Crane management held a meeting at their Pompano Beach headquarters where they announced the pay decrease to their Florida workforce.

Worker pay checks obtained by CraneWatchdog.com show that the wage cut went into effect for the weekly pay period beginning January 31, 2010 – five days before the reported company announcement. The checks with the new, lower pay rates were issued on February 12, 2010.

It is unclear at this time whether General Crane’s owners held similar meetings on the pay reduction for their employees working out of the Georgia and Texas branch offices.

General’s move to reduce wages came less than two weeks after announcing the hiring of financial advisors Morris Anderson. The Chicago-based consulting firm specializes in “turnarounds and workouts,” for troubled companies, often in bankruptcy. General Crane paid a $30,000 retainer to Morris Anderson. General also disclosed in its bankruptcy filings that Dan Dooley, the Morris Anderson principal who will serve as the lead consultant, charges $525 per hour for his services.

If you wish to comment on this article, you may reach us by email at contactus@cranewatchdog.com or by phone at 877-272-4514.

General Crane Forced to Make
Back Payments to Workers

January 6, 2010

In November 2009 Miami-Dade officials discovered that General Crane USA was under-paying its employees working on the Florida Marlins stadium project, a violation of a Miami-Dade County ordinance. As a result General Crane had to make back payments totaling nearly $6,000 to seven workers.

The stadium construction is a public project and thus requires site contractors to pay their workers Miami-Dade County prevailing wage rates by trade. According to the county’s “Building Construction Wages and Benefits Schedule” for the job, a certified crane operator must earn an hourly wage rate of at least $28.55 plus an additional $7.40 in “fringe benefits,” which commonly include contributions to worker health and retirement plans.

The total hourly compensation package must at least equal $35.95. If, for instance, an employer contributes less than $7.40 to their employee’s benefit plans they must pay the remaining sum to the worker in cash.

General Crane’s payroll records for the project from August 22 through October 17 revealed that the company had been shortchanging at least six of its employees for the entire duration.

One crane operator worked 176 hours on the project but was paid only $26.00 per hour – over two dollars less than the legal standard. General Crane contributed $1.34 per hour to his health benefits and $0.59 per hour for his 401(k) plan – a fringe payment of $5.57 per hour lower than the required rate.

In total, the operator’s hourly compensation package was over $7.50 less than the mandatory prevailing wage rate package. On November 20 General Crane wrote a back pay check to the worker for $1,574.00 after taxes.

For more information regarding General Crane USA pay and benefit information, visit our Area Standards section.