Industry Leaders Want Lege to Fight "Payroll Fraud"
Tycoons in commercial construction and homebuilding — industries often pegged as harbors for undocumented workers — are pushing back against some of their own, urging state lawmakers to close a loophole that guards employers against knowingly hiring illegal immigrants.
Stan Marek, the president and CEO of the Marek Family of Companies, an interior contracting company with offices statewide, said his industry is rife with contractors who purposely classify employees as subcontractors, or “1099” employees — a term gleaned from the employment form they fill out. Employers use this subcontractor classification to avoid paying payroll taxes, workers' compensation and overtime, Marek said, but also ...
Comments (7)
well informed
So, I guess everyone whining about being unemployed because of the 'illegals' will go take those low paying jobs?
Hannah Katz
Well Informed, I already have a job, but I can think of a lot of folks currently using the social safety net as a hammock who could use jobs. And they won't have to be that low paying, if only legal workers are in the labor pool. Their pay will be determined by the market.
Businesses that like to employ undocumentd workers on the cheap, and then let society pay for the benefits when their workers show up at the emergency room, school, etc. need to re-think amnesty. If the illegal workers become legalized, they will not work for slave wages either. Then these businesses will be looking for a new crop of illegal immigrants. Their slogan: "If I can't cheat, I can't compete!"
Michelle Michon via Texas Tribune on Facebook
What? No mention of Bob Perry or at least a statement from him? We all know he's put enough money into it to at least say something.
STOPTHE MAGNET
These construction, restaurant,poultry titans are so corrupt and greedy for money that they are selling out the nation. Americans will wake up politically impotent one day and realize too late its gone. These guys should lose their business licenses FOREVER and then be tried in a civil court for RICO damages. Paying back the taxpayers for all of the overhead they crammed onto the public the last three decades. So twisted and corrupt - they are going to have to be screwed into their coffins.
Janet Thomas
What the roofing industry does (and I suspect other companies in the construction industry) is hire only legal employees, however, they send their crew chiefs out to pick up as many workers as they need. That way they circumvent the current law and can circumvent any e-verify provision put in place. This isn't just in the residential trades, it's also in the commercial portion of the industry.
True Blue
There are two additional issues.
The first is the use of such "contract" workers and/or day laborers (legal or illegal immigrants as well as US citizens) for jobs such as asbestos removal which would otherwise require costly training, equipment, etc. Both sides of the transaction circumvent the regulations. I know of two demolition contractors who do this work. Its cash supports a cushy suburban lifestyle for the owners who just happen to own an unusual number of 9-passenger vans.
The second issue of course is that this is the perfect model of how to avoid paying child support. No reporting the employees, no state collection of back child support. It's not just undocumented workers on these sites. In fact, many of the crew leaders and site supervisors are working off the books too.
True Blue
One other way companies use the subcontractor classification to get around the regs: my neighbor was shocked to learn from the garage door company (a major national franchise) she called to replace her door that even though there's a law which prevents registered sex offenders from working in that industry, the companies just hire them as "subs" or contract workers. Apparently, they will work for less - after they are off parole or no longer under probation supervision and have to report their employment or activities to anyone. So it's the more serious sex offenders, those who must register for life, that are often employed off the books as well. My neighbor was told by the garage door company manager that everyone does it.