Marvin Mundo and Marciano Cruz are members of Houston Interfaith Worker Justice Center. They are also parents and hardworking Houstonians who did their fair day's work...
Payroll Fraud
Payroll fraud (also called worker misclassification and workplace fraud) is the illegal practice of designating an employee as a "1099 worker" or an independent contractor. Unscrupulous employers do this to avoid paying payroll taxes, unemployment tax, or workers’ compensation insurance and are therefore able to submit lower bids for projects, undercutting responsible contractors. Several states have already passed laws to penalize those who cheat workers and taxing agencies in this way.
The economy in California might be on the upswing, but the construction industry falls short regarding the underground economy and wage theft and insurance fraud for one of the...
New Wage Theft and Payroll Fraud Study Released in FloridaAccording to a recent report in the Florida Independent, wage theft and payroll fraud are rampant in Florida, and the...
First of all I have to tell you that I think that the subcontractors who hire day laborers, work them 12-14 hours a day, and then don’t pay them their base pay or even the...
Subcontracting companies working at Pulte Homes sites in Massachusetts have been found guilty of wage theft, payroll fraud, and unemployment insurance violations. The...
Loren Steffy, in his Sunday column for the Houston Chronicle, spells out the impact of payroll fraud and worker misclassification on the US deficit. He says that two things...
On July 13, Construction Citizen shared a story first reported by Dallas/Fort Worth television station WFAA about misclassification of workers on a school construction project....
Connecticut newspaper The Stamford Advocate reported that subcontractor John Dosky, owner of American Building Group LLC, was recently arrested by Connecticut State Police for...
The US Department of Labor’s Wage and Hour Division (WHD) has a website with specific information about the issue of worker misclassification, also known as payroll fraud, and the...
