Who’s cheating who?

 USD 501 has chosen to use a subcontractor to perform a portion of the carpentry work on the new gymnasium at Topeka West High School simply because they were the low bid. Unfortunately using a low bid is not always the best way to do business, especially on projects funded by our tax dollars.

 Champion Builders, a general contractor, was hired to construct a new gymnasium for Topeka West High School.  Champion Builders selected Hi Tech Interiors to perform some of the interior finish work.  Hi Tech Interiors has used labor brokers or “coyotes” to supply its work force.  These labor brokers misclassify workers as independent subcontractors to avoid paying social security taxes, unemployment insurance, workers’ compensation insurance, health or retirement benefits, or overtime pay.  Many misclassified workers never pay federal, state, or local taxes.  Such schemes rob our community of much needed tax dollars and rob our local fair contractors of the ability to compete for this work.  Not only does our community lose tax revenue, but when these workers get sick or hurt on the job, having no insurance or workers’ compensation, health-care is largely obtainable only at the expense of the local citizenry and the very governments which are being starved.

  It is estimated that between $2.5 Billion and $4.7 Billion in Federal Revenues were lost from 1996-2004 and the State of Massachusetts estimates it lost $4 million in state revenue from 2001-2003 both due to the misclassification of workers.  How much is the State of Kansas losing?

Doesn’t it seem ironic that in these times of having difficulty coming up with funds to support our education system we have overlooked this unfair practice used by these unscrupulous labor brokers?