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Brought to you by the hard working families of the Carpenters' District Council of Kansas City and Vicinity

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Q:  What are the costs to the Industry?

   

     This practice undermines the principals of competition critical to the construction industry by rewarding unscrupulous contractors.  A responsible contractor who pays State and Federal taxes and insurance is forced to compete against contractors who are able to slash their labor costs through illegally misclassifying their employees as independent contractors.  Misclassification creates an "un-level" playing field, favoring contractors who break the law.

 

Omaha World Herald

 'Labor Pains'

April 29,2003

"...It is difficult to be sure just how much tax revenue goes uncollected, since the workers in question are, after all, undocumented. But one of the Sunday stories ventured a reasonable estimate of $300,000 in federal and $30,000 in state taxes just for the Omaha metro area. Multiply that by other cities and counties with major projects under way nationally, and the magnitude of the problem begins to take shape."

 

 

 

 

 

 "The United Brotherhood of Carpenters and Joiners of America strongly supports all efforts to end the abuse of the 1099 Independent Contractor rules by unscrupulous contractors and labor brokers.  The use of misclassified independent contractors allows construction employers to illegally cut costs and use those cost savings to under bid responsible contractors who play by the rules.  Many of these workers are treated in an in humane manner that has been called modern day slavery."

Douglas J. McCarron

(President, United Brotherhood of Carpenters and Joiners of America)

 

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