Wednesday, January 4, 2017 - 9:08pm
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Heading into the new year, the federal government is ramping up efforts to educate employees and employers about the harms caused by worker misclassification. It’s a problem we’ve documented extensively over the years on Construction Citizen.
Thursday, August 25, 2016 - 7:20pm
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Ashland subcontractor On-Time Construction Services, Inc. and its owner Jonatas Vicente De Brito Barcelos have been cited $117,082 in restitution and penalties for intentionally violating the Massachusetts prevailing wage law and failing to submit true and accurate payroll records, Attorney General Maura Healey announced Monday.
New Law Will Strengthen Wage Law Compliance on Large Construction Projects
BERKELEY, Calif. /California Newswire/ — Last night, the City of Berkeley approved a first-of-its-kind local ordinance aimed at preventing wage theft on local construction projects, Smart Cities Prevail announced today.
The division and bureau signed a three-year Memorandum of Understanding intended to protect employees’ rights by preventing their misclassification as independent contractors or other non-employee statuses. The two agencies will provide clear, accurate and easy-to-access outreach to employers, employees, and other stakeholders; share resources and enhance enforcement by conducting coordinated investigations and sharing information consistent with applicable law.
In an effort to bring public attention to the issue, the unions are distributing fliers around job sites, identifying subcontractors and labor brokers at the sites whom they believe are engaging in wage fraud, based on affidavits from workers and photos of cash payrolls.
America is rife with complex plots by businesses to illegally dodge workers-comp premiums. The flourishing underground economy that exists in many urban centers adds more kindling to the fraud fire, especially in construction. FraudWire reached out to Matthew Capece, senior executive with the United Brotherhood of Carpenters, for his thoughts. He’s been a specialist in employer payroll fraud in construction since 1989.
Workers-comp premium scams by employers may steal more money than bogus work injury claims. At least that’s what many experts say. And the problem could be growing. This is especially true in urban centers with deep underground economies.