Five men worked for weeks on a $31 million project, but each week never got paid, and due to construction fraud, they will likely never see their paychecks.
San Francisco, CA -- (SBWIRE) -- 08/19/2013 -- A Florida based general contractor on a project that left five construction workers without week of pay says that it didn’t hire the workers and had no idea of the subcontractor that had brought them on the job site. That subcontractor was hired by another subcontractor to complete the job.
Soli Mercado-Spencer, an attorney for the Workers Defense Project, an advocacy group for construction workers, says no paper trails exist to prove that the subcontractor was linked to the federal job. Still, the group is trying to get restitution and compensation for the five laborers.
According to Mercado-Spencer, two out of every five construction workers in Texas are wrongly classified as self-employed independent contractors. This problem leads to tens of millions of dollars in lost tax revenues and overburdened safety-net hospital emergency rooms full of worker’s compensation insurance.
House Bill 2015 is expected to pass a $200 penalty construction companies for each worker found to be misclassified. For the rest of this year, the Texas Workforce Commission will be reviewing employer-tax-auditing procedures to determine how the law should be implemented, and then the law will take effect January 1.
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