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. Many use labor brokers and operate in the dark shadows of the underground economy.
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Cal DOL Cites Contractor $1.7 Million
DC AG Sues Contractors
DHS to Offer Protection to Exploited Immigrant Workers
USDOL Collects $860k for 568 Drywall Workers in San Diego
VA AG Brings Felony Charges Against Contractors on General Assembly Building
NY Law Makes Contractors Pay for Subs’ Wage Theft
National Study Shows $8.4 billion in Losses Due to Fraud
We all lose when contractors commit tax fraud—taxpayers, workers, law-abiding
contractors and insurers.
Construction industry tax fraud frequently goes hand in hand
with other illegal behavior, like wage theft and insurance fraud.