Company to settle kickback allegations

Tuesday, Sept. 12, 2000 | 11:13 a.m.

Jetstream Construction, a Clark County School District subcontractor, has agreed to pay six Hispanic workers $6,300 over allegations that the company required kickbacks from them to keep their jobs.

Jetstream and Nevada Labor Commissioner Terry Johnson entered into the consent agreement in August to pay the workers their claims for back wages.

The workers alleged that company managers required kickbacks of $200 or more per week from Hispanic workers and required workers to put fewer hours on their time cards than actually worked.

The school district could disqualify the company from work on school projects if wrongdoing is proven. The company does not specifically admit wrongdoing in the settlement, however.

The agreement cuts off further investigation by the state labor commissioner's office. However, other local, state or federal agencies could investigate and prosecute the company, Johnson said.

"We don't have the authority to grant universal immunity," he said.

Michael Slater, director of the Las Vegas Interfaith Council for Worker Justice and an advocate for the workers, argues that agencies should further investigate and prosecute the company.

He said the federal government could approach the case as a civil rights violation, because the company targeted Hispanic workers.

The consent agreement, signed Aug. 22 by Johnson and Jetstream President John Dombroski, included provisions that forbid either the commissioner, his office or the six workers from releasing details of the settlement to the media or the school district.

But Richard Linstrom, chief deputy district attorney, said the case's court file is a matter of public record. Linstrom and Johnson both said they could provide copies of the "confidential" settlement agreement to the media or to the school district.

Dombroski did not return phone calls Monday. A receptionist said the company no longer responds to media inquiries.

Jetstream representatives in the past have denied the allegations, saying the Carpenters Union fabricated them in an effort to unionize the 4-year-old drywall installation company.

Fred Smith, school district construction manager, said he does not know how much work the company does for the district. The company has been involved in at least some school projects, he confirmed.

The consent agreement covers a half-dozen school projects from 1997 through 1999.

"We have formally requested from the Labor Commissioner's office to be provided with details of their investigation," Smith said Monday. He said he has received verbal assurances that the information will be provided.

In May the Clark County School Board voted to monitor the results of the labor commissioner's investigation.

During that period Jetstream argued that the labor commissioner did not have authority over the company and refused to provide the state documents, including time cards, payroll records, canceled checks and other financial records.

Jetstream lawyers also argued that the company had no legal requirement to meet in state-mediated settlement conferences on the wage claims.

But Clark County District Judge Michael Cherry ordered Jetstream to turn over the records and to meet in settlement talks.

Slater said he is concerned that the settlement might mean the extent of wrongdoing by Jetstream will never be learned -- and that the company could continue to do business with the school district.

The settlement did not include payment for time the six workers spent trying to receive their back wages, he said.

Four workers received $630, one received $1,080, and one received $2,700. The agreement did not include any provision for damages. "One of the consequences of declining to litigate this issue is that we have no ability to say this company committed wrongdoing," Slater said. "To me it's very frustrating that crimes committed by corporations against workers are not a high priority."

The Interfaith Council and the Nevada Carpenters Union leveled the charges against Jetstream earlier this year. The case was forwarded to the Labor Commissioner, who by statute represents workers with this type of grievance.

Jim Sala, Carpenters Union organizing director, said the company has engaged in a pattern of similar violations, which workers and the Labor Commissioner resolved through settlements. He said such settlements fail to stop the wage-law violations.

"There's no penalty," Sala said. "It's not a deterrent, and it doesn't help the workers."

He compared it to a bank robber who "has to give back the money, but is free to do it again."

Johnson said he doesn't know of any other claims against Jetstream for other wage violations.

Sala said he is in touch with the workers, but they do not want to talk to the media about the settlement because they fear they will lose their money.

Slater and Sala both criticized the confidentiality provisions of the consent agreement.

"The agreement sends a message to other exploited Latino workers that if you are brave enough to come forward and testify against your employer, the government will cover it up," Slater said.

Although the company admits no wrongdoing, Sala said the settlement is "a documented record of a prevailing wage violation."

Johnson said his office "proceeded accordingly" with the evidence and needs of the six workers.

"We presented the information to the wage claimants. We made an interpreter available. They agreed to the terms," Johnson said.