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A growing number of construction contractors are tax cheats. They pay their employees off the books or, less often, wrongly classify them as independent contractors. It’s intentional. It’s a business model. Many use labor brokers and operate in the dark shadows of the underground economy. We ALL lose when contractors commit tax fraud—taxpayers, workers, law-abiding contractors and insurers.

Each year, when Americans face the April 15 deadline for filing taxes, union carpenters across the United States and Canada take to the streets to call for action against those employers who cheat the system. The activities take place in a period we call “Tax Fraud Days of Action.”

It’s a tradition we look forward to ending someday soon, but we can’t do it alone.

In some places, laws need to be passed. In others, they need to be enforced. And in just about every location, contractors who commit wage theft and tax fraud need to face much stiffer penalties. Within the seven-state region of the North Atlantic States Regional Council, diverse public activities are planned and held by each affiliated local union. The numbers attending and the noise they make are as loud as ever.

And why wouldn’t it be? Union contractors pay fairly. They properly classify carpenters as employees, make payments to unemployment insurance, Social Security and Medicare. They secure workers’ compensation coverage for employees and pay them properly when they work overtime.

Unfortunately, many nonunion employers don’t do any of those things. Too often, they commit wage theft. That is, they don’t pay workers the wages they have committed and are obligated to pay. What’s worse is that many general contractor and developers turn a blind eye to this activity because it provides a financial savings to them.

Honest contractors can’t—and shouldn’t HAVE to—compete with that. Federal, state and local governments shouldn’t have to find creative ways to make up for lost revenue.
Honest citizens—union carpenters, especially—shouldn’t have to suffer from lost work and crippled hometowns.

“Wage theft and tax fraud deprive cities, states, and the federal government of critical tax dollars while denying ethical businesses the chance to fairly compete for work. Every worker should be afforded the dignity, benefits and protections they rightfully deserve,” NASRCC Executive Secretary-Treasurer Joe Byrne said.

“Exploited workers and law-abiding contractors do not deserve the hand they’ve been dealt because of the greed and callousness that is the foundation of the tax fraud business model,” said UBC General President Douglas J. McCarron. “We will not rest until this ends.”

Stand up and speak out. Join us for Tax Fraud Days of Action April 6th to 18th. Check in with your Local union hall for events in your area or click here.