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Q:  Why do employers break the law and misclassify workers?

                        What employers avoid paying

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Federal payroll taxes, including the 7.65% social security tax and the federal unemployment insurance tax

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Local and City taxes

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Workers compensation premiums

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State unemployment insurance premiums

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Contributions to employee health insurance, retirement benefits, life and disability insurance

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Vacation and sick leave

 

The Denver Post

 Labor brokers cut costs, corners
Fast-growing firms exploit immigrants to feed construction industry

February 16, 2003

"... Some of the company's drywallers lived five to a hotel room and said they made $4 to $10 dollars an hour less than the union wage of $19.70. They said they worked 56 hours a week. They were not paid overtime, nor were they covered by workers' compensation. But they didn't complain about those conditions because of their immigration status, many said."

"...Mike Nobles, a Tennessee-based broker who provided dozens of workers to help build the $147 million Sky Ridge Medical Center in Lone Tree last year, said his company is profitable because he relieves construction contractors of hiring hassles, providing them cheap, union-free labor."

"...You don't have to worry about workman's comp payments with Mexicans because they are afraid to go to the hospital. They're not going to file a big claim and sue you like the Americans are. That's what this boils down to," Nobles said. "We have these people intimidated."

 

 

 

 

 

 

 

 

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