Hubbell Homes adopts anti wage theft clause in subcontractor agreements

Hubbell Homes, one of the largest residential builders in central Iowa, has adopted an anti wage theft provision into the company’s subcontractor agreements.

The company's move comes after an impressive 8-month organizing campaign packed with people power from CCI members. On Nov. 21, CCI members gave a powerful presentation around wage theft and the new provision to more than 60 of Hubbell Homes' trade partners and subcontractors at the Copper Creek Golf Course in Pleasant Hill.

The provision states:

"Payment of Employees and Sub-Sub Contractors—The Subcontractor shall comply with federal, state and local wage and hour laws, tax laws, social security acts, unemployment compensation acts and workers’ compensation acts insofar as applicable to the performance of this Subcontract, including all city, state and federal wage and hour laws.  The Subcontractor shall timely pay all employees and sub-sub contractors.  FAILURE TO COMPLY WITH THE PROVISIONS OF THIS SECTION MAY RESULT IN TERMINATION OF THIS SUB-CONTRACTOR AGREEMENT."

This means that if any subcontractor is found to be engaging in wage theft at a Hubbell Homes project, it could have its contract terminated.

“We want our businesses to behave in an ethical way that lifts up and supports the community, and creates a good working environment that does not tolerate wage theft or any unscrupulous business practices,” said CCI member Cherie Mortice.

The presentation discussed the impacts of wage theft in Iowa, highlighting figures from our report on wage theft, and letting people know how by organizing workers for change, CCI worked to get Hubbell Homes to include anti wage theft language in their business agreements.

“We do want to collaborate with ICCI and appreciate the importance of subcontractors paying their employees and their sub-subcontractors,” wrote Dan Cornelison, VP and legal counsel of Hubbell Homes in an e-mail to Iowa CCI organizing staff.

Iowa CCI had heard of at least 5 cases of wage theft by subcontractors on Hubbell Homes projects, which is why in August, a team of CCI leaders met with Rick Tollakson, president and CEO of Hubbell Homes to negotiate the anti wage theft policy proposal.

We deal with the individual subcontractors separately, but this time we also went up the power tree to demand those at the top to stop doing business with shady entities that steal wages from workers.

In September, CCI members Jose Olivares and Miguel Afanador, recovered over $2,000 in wages from the unscrupulous subcontractor at a Hubbell Homes project. Hubbell Homes also terminated its contract with this subcontractor.

Iowa CCI members are planning to meet again with Hubbell Homes in the Spring of 2013.