All of us at Causey Wright are thrilled that the new year is upon us. We wish you happiness, health and good fortune in 2018.
Happy New Year!!
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Happy New Year!
All posts by Kit Case
Kent, WA Landscaper with History of Illegal Contracting Charged in Consumer Scams
A Kent man faces criminal charges in a scheme that left consumers with unfinished and botched landscaping projects despite paying thousands of dollars.
Honorio Mendez-Ortega, 42, faces four counts of performing or offering to perform work as a construction contractor without being registered by the state.
Mendez-Ortega has pleaded not guilty to the charges in King County District Court. He goes by multiple aliases, including Honorio “Orio” Mendez, Antonio Mendez, Honorio Mendez Ortega, and Honorio Ortega Mendez.
The King County Prosecutor filed the charges based on contractor compliance investigations by the Washington State Department of Labor & Industries (L&I).
Unregistered contracting is a gross misdemeanor punishable by up to 364 days in jail and $5,000 fine.
“It’s horrible when someone uses elaborate lies and deception to fool consumers,” said Elizabeth Smith, assistant director for L&I’s Fraud Prevention & Labor Standards. “But we see it all too often. Even if a friend or a home referral service recommends a contractor, you still need to do your homework and check with us for tips.”
Consumers should always hire contractors registered with L&I, and never pay in full until the job is done right.
Renton couple pays $32K for job that was never finished
Consumers found Mendez-Ortega through an online, construction referral service and Craigslist ads. He’s accused of using company names and contractor licenses that were registered to other people.
In the most recent case, investigators say Mendez-Ortega accepted more than $32,000 from a Renton couple last year. According to the charges, he agreed to build an outdoor kitchen and patio and to landscape their yard even though he was not a registered contractor.
Charging papers say that Mendez-Ortega quit in the middle of construction and refused to finish or return the couple’s money. What little work Mendez-Ortega’s crew had done was so poor it had to be redone.
Mendez-Ortega told the couple his business was Best Way Services LLC, a construction company that turned out to be registered to a man in California. The couple wrote two checks to the company, court papers said, and at Mendez-Ortega’s direction, wrote the remaining $17,000 in checks to him personally.
Victims in Kirkland, Maple Valley, Bellevue and Seattle lose $27K
Mendez-Ortega was recently arrested on a bench warrant for three unregistered contracting charges that were filed last year for incidents around King County in 2014 and 2015. The arrest warrant was issued after he failed to appear for arraignment.
According to charging papers, Mendez-Ortega failed to finish landscape projects for two of the customers, and never even showed up for work after accepting deposits from two other homeowners.
He falsely told those victims that his business was Spike Services LLC, charging papers said. Though he didn’t own the company, he introduced himself using the real name of the owner. It turned out the owner was a college student from Seattle who was attending classes in Jakarta, Indonesia, when many of the incidents occurred.
Long history with L&I
Since 2013, L&I has cited Ortega-Mendez with 11 civil infractions for unregistered contracting. He owes L&I more than $84,000 in fines, in unpaid employee wages, and workers’ compensation insurance premiums. He owes the state Department of Revenue more than $151,000 in unpaid taxes.
Ortega-Mendez originally used his own name to register two contractor businesses from 2003 to 2011. The registrations were suspended partly because of $83,000 in court judgments to harmed customers. He could not register again until he paid the judgments and met all other requirements.
State law requires construction contractors to register with L&I. The department confirms they have liability insurance, a business license, and a bond – requirements that provide some financial recourse to consumers if problems arise.
L&I can issue violators a civil infraction, refer them for criminal prosecution or both.
Hiring a contractor? Hire smart.
* Verify contractor registration at ProtectMyHome.net<http://protectmyhome.net/>.
* Get three written bids.
* Beware if you’re asked to write checks to an individual, instead of a company.
* Don’t pay large deposits or entire costs up front.
* Check out contractor references and credentials.
* Get more tips at ProtectMyHome.net or call L&I at 1-800-647-0982.
Photo by jamelah on Foter.com / CC BY-NC-ND
Merry Christmas!
All of us at Causey Wright wish you and your families a Merry Christmas!
Port of Seattle Purchases Salmon Bay Marina
Property adjacent to Fishermen’s Terminal to support maritime, industrial development
The Port of Seattle Commission voted to purchase Salmon Bay Marina, located on the Ship Canal adjacent to the Port’s Fishermen’s Terminal facility. The five acre property contains five docks supporting 166 slips measuring 6,547 lineal feet of moorage on freshwater. The purchase price was $15,679,120.
“The purchase of Salmon Bay Marina is a step toward fulfilling our Century Agenda goal to double the number of jobs in our region associated with fishing and maritime and is financially smart for the Port,” said Commission President Tom Albro. “It also protects urban industrial and maritime land, which is also environmentally wise.”
The property was purchased by the Draper family in 1945 and developed into Salmon Bay Marina. Over the next 72 years, four generations of the family served as stewards of the marina, and are excited to see the Port continue its maritime heritage.
There are a number of potential uses for the property, including light industrial facilities that could support maritime and manufacturing companies in the area. The site could support structures in the range of 60,000 square feet.
“Salmon Bay Marina is a valuable waterfront property perfectly suited for continued maritime use,” said Eugene Wasserman, President of the North Seattle Industrial Association. “I thank the Port of Seattle for preserving this industrial property that will provide jobs and tax revenue throughout our region.”
The existing marina slips will remain, although the house boats will be removed prior to the Port taking possession of the property. Environmental remediation from prior tenants may run close to $900,000.
“We applaud the Port of Seattle for purchasing and preserving this unique freshwater recreational boat facility,” said Peter Schrappen, Director of Government Affairs for the Northwest Marine Trade Association. “These assets are rare, and help maintain maritime and family-wage jobs.”
Click here for more information about the Salmon Bay Marina purchase.
Photo credit: Port of Seattle
WA L&I NEWS: Cost of Workers’ Compensation Insurance Dropping for Many Yext Year
The price of workers’ compensation insurance will go down for many businesses in Washington next year. Today, the state Department of Labor & Industries (L&I) announced that the average amount employers and workers pay for the coverage will drop by 2.5 percent in 2018.
Unlike many states, Washington employers and employees share the expense of workers’ compensation premiums.
After proposing the decrease in September, the agency hosted several public hearings around the state to take input. L&I Director Joel Sacks made the final decision this week.
“We’ve made several improvements that are helping injured workers heal, return to work sooner and avoid long-term disability,” said Sacks. “We’ve also used small rate increases in recent years to make the workers’ compensation system healthier and to build our contingency reserve. As a result, we’re able to cut premiums in 2018.”
Lower rate means businesses and employees will pay millions less
The rate decrease means employers will pay about $34 less a year per employee for workers’ compensation coverage in 2018. As a group, Washington employers will pay $67 million less in premiums. Employees will also pay less for their share.
L&I attributes the decrease to several factors, including the improved economy, employers and workers focusing on safety, and L&I initiatives that are helping injured workers recover sooner and reducing workers’ compensation costs.
One example of an improvement to the workers’ compensation system involves providing injured workers vocational support and assistance much earlier in claims. It’s helping people hurt on the job return to work sooner. The rate of workplace injuries that develop into long-term disability is down by more than 18 percent from 2012.
The 2.5 percent workers’ compensation premium decrease is an average; individual employers may see smaller or larger drops depending on that employer’s industry and claims history. For that same reason, some employers will see increases.
Steady and predictable rates
L&I is working to avoid large rate swings that make it hard for employers to plan. The agency determines the proposed rate each fall by looking closely at expected workers’ compensation payouts, the size of the reserve funds, wage inflation and other financial indicators.
Employers and workers pay into the workers’ compensation system to help cover the cost of providing wage and disability benefits, as well as medical treatment. L&I is the state’s primary workers’ compensation insurance provider, covering about 2.8 million workers and nearly 180,000 employers. The agency accepts more than 90,000 claims a year.
The new rates go into effect on Jan. 1, 2018. More information about 2018 workers’ compensation rates is available at www.Lni.wa.gov/Rates.
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U.S. DOL and TX Pottery Manufacturer Reach Settlement Following Worker Fatality
The U.S. Department of Labor’s Occupational Safety and Health Administration (OSHA) and Marshall Pottery, Inc., have reached a settlement agreement including a penalty of $545,160, after the death of an assistant plant manager.
On April 16, 2017, investigators determined that the manager was servicing a kiln and became trapped inside when it activated. The company was cited for six willful violations and 21 serious violations. Citations were issued following OSHA’s investigation into failures to implement confined space and lockout/tagout programs.
“This company was cited for similar violations in 2008 after another fatality at the plant,” said OSHA Area Director Basil Singh, in Dallas. “Failures to implement lockout/tagout and confined space programs are unacceptable. Employers must use all required safeguards and procedures to prevent the recurrence of similar tragedies.”
The company had 15 business days from receipt of its citations and penalties to comply, request an informal conference with OSHA’s area director, or contest the findings before the independent Occupational Safety and Health Review Commission. Upon receipt of the citations and penalties, the company scheduled an informal conference with the OSHA area director. At the meeting, OSHA and the company reached a settlement. As part of the settlement, the company also agreed to abate the violations.
Under the Occupational Safety and Health Act of 1970, employers are responsible for providing safe and healthful workplaces for their employees. OSHA’s role is to ensure these conditions for America’s working men and women by setting and enforcing standards, and providing training, education and assistance. For more information, visit http://www.osha.gov.
OSHA News Release: 11/28/2017
Release Number:
17-1383-DAL
News Tribune: El Gaucho Restaurant Agrees to pay $1.5 million to Settle Lawsuit
El Gaucho has agreed to pay $1.5 million to settle claims it improperly withheld wages and tips from employees working at some of its high-end restaurants, including the Tacoma location.
The proposed settlement is in response to a 2016 lawsuit originally brought against the company by a former server at the Tacoma restaurant, who alleged managers withheld tips and required off-the-clock work, among other labor-law violations.
About 400 current and former employees at the Tacoma, Bellevue and Seattle restaurants are affected and will be notified, according to the settlement, which was preliminarily approved by Pierce County Superior Court Judge G. Helen Whitener Nov. 17. Whitener will decide whether to finalize the settlement at a hearing April 20.
Chad Mackay, CEO of El Gaucho’s operating company, said in a statement Tuesday: “Our company consistently strives to be a great place for our employees to build their careers and we provide excellent compensation, benefits, training and work environment. Our decisions are always based on what is right for our team, our guests and our company. Therefore, we chose to settle this lawsuit rather than continue to spend company resources on legal fees.”
The former Tacoma server, Matthew Blasco, alleged El Gaucho gave employees cards with restaurant credit in lieu of payment for off-the-clock work, such as prep work or cleaning, and that servers were sometimes required to work without being clocked in.
His lawsuit also accused the company of giving management a percentage of the tips, and denying or not paying workers for breaks that are required by state law.
Read the rest of The News Tribune story here…
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Port of Seattle Shares Janitorial Contract Between Small Businesses
New custodial contracts to increase service & opportunities.
Small and disadvantaged businesses will gain new opportunities under janitorial contracts recently awarded by the Port of Seattle for Sea-Tac Airport.
The Port broke up its large exclusive contract for custodial services into more opportunities that will improve customer service and accountability, and provide revenue opportunities for more small and disadvantaged businesses. The four new contracts cover different parts of the facility, but each will increase performance standards, project an increase in labor hours and number of jobs, and include employee retention and labor harmony provisions to protect workers.
Local, woman-owned small business joins non-profit social enterprise and minority-owned small businesses in awards.
Under the new contracts, small businesses will perform services equal to about 45 percent of the four contracts combined. In addition, each new contract is required to provide employee retention by extending an offer to existing employees for a minimum of 180 days, as well a written labor peace guarantee with the current custodial labor union, SEIU Local 6.
The winning bidders include:
- C&W Services, a national company based out of Massachusetts, partnering with Whayne Enterprises, a small, minority-owned business based out of Denver, won bids to operate in South Satellite, Concourse A, Concourse B, public pre-security areas such as the ticketing and baggage claim areas.
- PRIDE Industries, a non-profit social enterprise based in Roseville, California that creates jobs for people with disabilities and veterans, partnering with Evergreen Building Services, LLC, a small, woman-owned business based in Mill Creek, Washington, won a bid to operate in Central Terminal, Concourse C, Concourse D, and North Satellite.
- Whayne Enterprises won a bid to operate independently in non-public areas such as the bagwell, Airport Office Building, Police/Security areas, and remote facilities.
Read the full story on the Port’s website.
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WA Construction Company Cited for Crane Safety Violations
Power lines and cranes a very dangerous mix — construction firm cited for putting workers at risk.
A Kirkland, WA construction company is facing a large fine for workplace safety violations for operating a crane too close to high-voltage power lines without taking proper safety precautions. Workers are hurt and killed every year when cranes come in contact with power lines. It’s a significant workplace safety issue, with very specific requirements that must be followed.
The Department of Labor & Industries (L&I) has cited Compass General Construction for two willful violations, the most serious, and one general violation. The company faces fines totaling $96,000.
The violations were discovered last May, just a few days after an L&I safety inspector visited the job site and went over the crane operation safety requirements with the site superintendent. At that time, there was a crane on site, but not near power lines.
A few days later, L&I received a referral from Seattle City Light that the crane was operating near the power line without the required safety precautions. L&I returned to the site and verified that the crane was operating near the power lines without a warning line, such as highly visible flagging or caution tape to keep the crane a safe distance away, or a dedicated spotter to alert the operator if he got too close.
As a result, Compass has been cited for one willful violation for not appointing a lift director to oversee the crane lifts and rigging crew. The company was cited for a second willful violation for not ensuring that power-line safety requirements were met, including having an elevated warning line a safe distance from the power lines, along with a dedicated spotter. Each violation carries a penalty of $48,000.
Both violations are considered “willful” because the L&I compliance officer went over the specific requirements with the site superintendent just three days earlier.
Cranes and power lines a known hazard
Last September, two workers were severely injured and nearly killed while working near the same West Seattle power line when a high-voltage jolt of electricity traveled down a crane’s hoist line to the men below.
The dangers of cranes and overhead power lines are well known. There were nine deaths in Washington from crane contacts with power lines from 1999 to 2012, including a double fatality in 2010.
L&I issued an alert in 2012 warning companies of the deadly hazard after receiving reports of six power line contacts by cranes in just six months.
Company on severe violator list
Along with the two willful violations for the recent incident, Compass General Construction was cited for one general violation for not documenting that the rigging supervisor had passed the required tests showing he was qualified.
As a result of the willful violations, Compass has been placed on the severe violator list and will be subject to follow-up inspections to determine if the conditions still exist.
The company has appealed the violations.
Penalty money paid in connection with a citation is placed in the workers’ compensation supplemental pension fund, helping workers and families of those who have died on the job.
For media information or a copy of the citation, contact Elaine Fischer, L&I Public Affairs at 360-902-5413.
Connect with L&I: Facebook (facebook.com/laborandindustries) and Twitter (twitter.com/lniwa)
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Happy Thanksgiving!
All of us at Causey Wright wish you and your family the happiest of holidays today. We have many things to be thankful for over the past year. We celebrated marriage, travel, career changes and a new baby this year – wow!
Life is good. Love your families, be kind to the world.
Happy Thanksgiving.
Photo: Central Park, NYC
