Police investigating allegations of wage theft on city projects

Police investigating allegations of wage theft on city projects »Play Video
SEATTLE -- Police here are conducting a criminal investigation into allegations of inadequate wages paid to construction workers on housing projects financed by the city.

The mayor's office on Monday announced the investigation into allegations involving wages and worker conditions on two projects being developed by nonprofit housing providers.

"A day's work deserves a day's wage," said Seattle Mayor Mike McGinn.

Carpenters and dry wall workers say they've been working 10 to 12 hours per day on city-financed housing projects, but have not been receiving full pay.

"We believe everyone should be paid for what they've earned," said Harry Hoffman of the Housing Development Consortium.

The International Union of Painters and Allied Trades, which tracks construction projects to ensure proper compensation, first raised the allegations.

"The issue that was addressed today focused in on two contractors: Leender's Dry Wall and Norogachi Construction," said union representative Jeff Kelley. Both companies have been put on notice and told they owe worker hundreds of thousands of dollars.

And the union has made additional accusations against the companies.

"In one instance with Norogachi Dry Wall, they physically assaulted an employee when they found out that he was talking with us. Leender's Dry Wall, when they found out an employee was going to be testifying to a federal agency, they threatened them with deportation," Kelleys aid.

No one at Norogachi Construction could be reached for comment.

David Leender of Leender's Dry Wall said the allegations are merely "lies."

"We take these allegations very seriously," said the mayor. "We've gathered evidence. We have referred some of these for criminal investigation."

A city ordinance against wage theft took effect in 2011.