On Wednesday, February 27, over 500 construction workers and their supporters marched to the Texas Capitol to rally for better working conditions in the industry. Holding banners with facts like “Texas is the Deadliest State to Work in Construction” and “More Workers Die in Texas Than Any Other State”, these activists called for an end to the dangerous conditions and frequent legal violations that characterize Texas’s construction industry. During the day, workers and their advocates visited with every senator and representative, as well as the Governor’s and Lt. Governor’s offices, to share their experiences with workplace injuries, wage theft, and payroll fraud.

A recent study by the University of Texas found that one out of every five workers in Texas has been injured on the job and required medical attention. The study also found that construction workers in Texas die on the job at a higher rate than in any other state Read more » about Day of the Fallen 2013: Stop Injuries and Legal Violations in Texas Construction

The Texas Workforce Commission (TWC) is considering interagency collaboration to step up enforcement of worker misclassification violations in Texas, a point they discussed in a meeting with construction industry leaders in December.

Misclassification occurs when employers wrongfully identify their employees as independent contractors by providing them with a 1099 form instead of the W-2 for employees or by paying wages in cash and failing to withhold taxes.  By misclassifying their workers, unscrupulous employers cut their costs by getting out of paying payroll taxes and fraudulently obtaining workers compensation policies for fewer workers than they actually employ.

When government agencies such as the TWC, the Texas Department of Insurance (TDI), the Texas Comptroller of Public Accounts and the Attorney General of Texas share information, they can improve enforcement efforts by identifying likely violations for more effective investigations.   Read more » about Texas Agencies Consider Collaboration

Press release from Emily Timm of the Workers Defense Project about the Texas Workforce Commission vote this Monday on proposed legislation to strengthen penalties for worker misclassification in Texas:

As unemployment coffers go empty, TWC votes down proposal to increase penalties for employers who misclassify workers

Dishonest Employers Cheat Texans out of $35 Million in Taxes

Austin, Texas—On Monday, in a 2 to 1 vote, the Texas Workforce Commission declined to support a recommendation for the coming legislative session that would strengthen state penalties for employers who misclassify their workers as independent contractors, thus encouraging businesses to abide by the law, and leveling the playing field for honest employers. In Texas, misclassification results in a loss of at least $35 million dollars to the starved unemployment insurance fund each year.

Employers misclassify their workers when they fail to withhold taxes, pay in cash, or provide their employees with a 1099 instead of the W-2 form required for employees. Misclassification results in billions of lost tax dollars to the federal and state government. In certain industries in Texas, such as construction, it is estimated that as many as 38% of workers are misclassified. Texas employers who break the law and undercut responsible businesses save an estimated 9% on payroll taxes including workers’ compensation, costing Texas taxpayers millions in unemployment insurance each year.  Read more » about Misclassification Update in Texas