The Fight Against Payroll Fraud
Payroll fraud, considered the “dirty little secret” of the construction industry, drains tax revenues and hurts honest employers every year. The Southwest Regional Council of Carpenters (SWRCC) is working hard to make construction markets across our council more fair and honest by helping local officials hold unscrupulous employers accountable and improve area standards.
Employer payroll fraud takes many forms—and they all give law-breakers an unfair edge for stealing jobs from honest companies and employees. Every year, these well-planned schemes steal billions from taxpayers, government agencies, insurers, Social Security, and more. – PayrollFraud.net
Just in August of this year (2017), the California Labor Commissioner’s Office filed a $6.3 million lawsuit against Calcrete Construction for wage theft violations affecting over 240 construction trades workers. This lawsuit stemmed from a referral by the Carpenters/Contractors Cooperation Committee (C/CCC) and is a good example of an emerging form of payroll fraud – the misclassification of construction trades workers as ‘independent contractors.’ This practice distances subcontractors from the obligation to pay workers and often makes workers more vulnerable to payroll fraud.
The United Brotherhood of Carpenters and Joiners of America (UBC) explains “(f)raud is not a union-only issue. Payroll fraud affects the entire construction industry, shrinks public budgets, and even increases health care costs. The UBC is dedicated to shutting down this destructive criminal activity, regaining lost tax revenue and protecting honest employers and taxpayers.” Together with the SWRCC, Union Carpenters are fighting this scourge across North America.
For more information, the latest news, research and data on the enormous costs of payroll fraud, and enforcement resources please visit the UBC PayrollFraud.net web page.