This is the second in the series about the Construction Bandits and how they do business in a way that cheats many workers and ultimately you, the taxpayer.
An article by Karl Kiefer appeared in September of 2009 in NumbersUSA under Charles Breiterman’s blog which was entitled, Mixing the Mud: A Working Man’s Views on Illegal Immigration, Tricks of The Trade. Immigration is not part of our discussion here, rather we wanted to illustrate how the Bandits in our industry get around the existing laws. We want you to be aware of those illegal practices and we want you to join our efforts to create a more sustainable workforce for the industry.
Kiefer points out one way that the Bandits get around the insurance costs is to lie about the number of workers they have on their crews or to buy coverage for only one or two of their crew. Conveniently, the “covered” workers are the only ones ever injured on the jobsite even though that is far from the truth.
Another way that they cheat is to misclassify the workers as independent contractors and to pay the workers’ wages with cash without paying taxes and unemployment (FUTA and SUTA). When they don’t pay Federal or State income taxes, they are cheating us out of tax funds that the country desperately needs today. Read more » about How the Commercial Construction Bandits Cheat You