Contractors over LBJ Hospital expansion accused of 'stolen wages,' intimidation

Contractors over Houston hospital expansion accused of worker mistreatment

Labor leaders are accusing contractors on the $2.5 billion LBJ Hospital expansion project of stealing almost $500K in wages and benefits from more than 170 workers. FOX 26's Angie Rodriguez has the details

HOUSTON - A massive labor dispute is unfolding over the taxpayer-funded expansion of Lyndon B. Johnson (LBJ) Hospital in northeast Houston as labor leaders formally accuse contractors of "stealing" nearly half a million dollars from the workers building the project.

The Allegations: Missing Money and a Climate of Fear

What they're saying:

On Wednesday morning, Gulf Coast area labor representatives appeared before the Harris Health Board of Trustees at their Bellaire headquarters to deliver a strong message: stating the $2.5 billion bond approved by voters in 2023 is currently funding serious wage and hour violations.

According to documentation presented by labor leaders, at least 170 workers on the project have been affected by unpaid wages and benefits. The heart of the dispute centers on McCorvey Sheet Metal Works LP, a subcontractor on the site.

Union representatives allege that:

• $480,000 in wages and benefits remain unpaid.
• 130 sheet metal workers have been misclassified or underpaid.
• Workers have faced intimidation and retaliation for attempting to report these violations.

"These people are working in fear of losing their jobs or speaking up. This is a prevailing wage project. Why does our community have to go through that?" said Rico Sanchez of SMART International during a press conference Wednesday morning. "The ask that we have is: pay these workers full. Pay them the restitution, treat them correctly." 

Taxpayer Accountability

Big picture view:

The expansion of LBJ Hospital is the centerpiece of a $2.5 billion bond initiative intended to modernize Harris Health and attempt to create the first Level I trauma center outside the Texas Medical Center.

Because Harris Health—the county’s public healthcare system—manages these funds, labor advocates argue the Board of Trustees bears the ultimate responsibility for who they partner with.

"Harris Health cuts the checks and signs the contracts," a media advisory from the labor group stated. "They have both the power and the duty to ensure that contractors they partner with... are treating their workers with dignity."

Contractor and Board Response

The other side:

The project’s general contractor is McCarthy Building Companies, Inc., which oversees the various subcontractors onsite.

While labor leaders have called for Harris Health to stop awarding contracts to companies with histories of "cheating workers," the Board has yet to issue a formal ruling on the restitution of the alleged $480,000.

The following statement was sent to FOX 26 on behalf of Harris Health:

What’s Next?

The LBJ expansion is not scheduled for completion until early 2029. However, labor leaders are demanding immediate restitution for the affected workers.