Southern Oregon University paying record $2.5M in wage dispute
The largest settlement in the Oregon Bureau of Labor and Industry‘s 112 year history has been agreed to by Southern Oregon University. Their $2.5 million settlement to end a wage dispute with 325 workers.
Data that was surely a key component in economic experts’ analyses of lost earnings came from 80 audits, which “determined that 44 contractors and subcontractors on the project owed workers nearly $2.6 million as a result of allegedly failing to pay required prevailing wages.” Investigators also found that the construction was administered by the university in a way that was not in line with the state’s prevailing wage laws.
An additional aspect of the analysis of damages in this case centered on prevailing wage laws that set premium rates and benefits for construction workers who work on public projects. These rates are usually higher than market-rate wages and benefits. For example, consider that “in Jackson County, prevailing wage rates are $24.25 per hour in wages and $10.01 in benefits for general laborers, $28.45 per hour in wages and $14.48 in benefits for carpenters and $29.78 per hour and $14.44 in benefits for electricians.”
The workers will receive an average settlement of $7,700 per person for their labor in building a new dining hall and two student residences. The university did not admit fault as part of the settlement and had no comment on the settlement.
Prior to this settlement, the largest on record was $2.4 million paid to six former employees by Daimler Trucks North America to settle claims of racial discrimination and sexual harassment.
Learn more about working with economic experts, and how back and front pay are calculated in wage disputes:
Types of damages available in employment cases, by Barbara L. Johnson for the American Bar Association.
An introduction to back and front pay studies by EmployStats.
Oregon State Bar legal practice tips for working with economic experts in employment cases, by Scott Miller.
Economic damages in an employment case, calculations and assumptions, by John A. Beranbaum.
