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 ...

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