The Losses Keep Mounting

Watch the losses climb from 2017 to now! $8.4 billion a year was lost from 2017 through 2020 and $10 billion a year from 2021.

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It’s Time to Rip Up the Fraud Playbook
Tax Fraud Days of Action, 2026

Members of UBC councils throughout the U.S. and Canada gathered April 6–18 at Tax Fraud Days of Action events to say, “enough!”  Enough of the greed that leads to shady business practices and shameless criminality. Enough exploitation of workers and race-to-the bottom tactics that push honest contractors out of business. Enough of ripping off taxpayers.

It’s time to rip up the employer tax fraud playbook.

Tax Fraud Days of Action events unfolded in large cities and small from coast to coast, outside worksites, in the halls of government and in many public locations. Hundreds took part in rallies, public forums, jobsite visits with elected officials and other events to protest the fraud crisis.  

“It’s flat wrong when ordinary workers struggle this much to make a living, and when honest businesspeople are iced out of the market—all due to a towering greed that has perverted our industry,” said UBC General President Douglas J. McCarron. “And it hurts everyone, as taxpayers and members of our societies in the U.S. and Canada.”

Employer tax fraud schemes include outright wage theft, misclassification of employees as independent contractors, the use of labor brokers and layers of crooked subcontractors, shady banking practices, refusal to deduct and pay payroll taxes like Medicare and Social Security, labor trafficking and workers’ compensation employer premium fraud.  

Recent studies have shown that up to 2.1 million U.S. construction workers are illegally misclassified or paid off the books.  Misclassification alone costs individual workers from $10,000 to $17,000 per year. And some 39 percent of construction workers’ families rely on public assistance to make ends meet, costing taxpayers $28 billion per year.

In Canada, the residential construction industry contributes nearly 33 percent, or $23.7 billion, to the nation’s $72.4 billion underground economy, which is responsible for $3.1 billion in lost provincial and federal revenues.

In the U.S., a study by The Century Foundation disclosed $10 billion a year in state and federal tax fraud, $1.9 billion in overtime wage theft and $5 billion in unpaid workers’ compensation premiums.

Here are examples of 2026 Days of Action events and accomplishments:   

Cleveland, Ohio—Representatives of the Central Midwest Regional Council of Carpenters took senatorial candidate and former Senator Sherrod Brown and his team to a local construction project for a firsthand look at the realities of working on many jobsites. In a follow-up video, Brown expressed disbelief at the conditions, the lack of safety, and the level of exploitation taking place.

Ontario, Canada—Canadian District Vice President Jason Rowe andCarpenters’ Regional Council President Tom Cardinal led a delegation from the Canadian District to meet with Ontario Premier Doug Ford and Ontario Labour Minister David Piccini to discuss the underground economy in construction and our shared commitment to taking action to stop it.  In addition, leadershipfrom the Carpenters Regional Council met in Ottawa for a series of meetings with Members of Parliament and Cabinet Ministers to share information related to Tax Fraud Days of Action.

Sacramento—Hundreds of members of the North Coast States Carpenters Regional Council gathered on the steps of the state capitol in Sacramento at an event featuring State Senators Tim Grayson, Josh Hoover and Jesse Arreguin; Sacramento District Attorney Thien Ho; and Allied Framers Vice President of Operations Jessie Carter.

Georgia—Members of the Southern Regional Council of Carpenters rallied at Liberty Plaza in Atlanta, with support from speakers including State Representatives Dewey McClain and Stacey Evans; State Senator and candidate for lieutenant governor Josh McLaurin; and gubernatorial candidate Geoff Duncan.

Medford, Massachusetts—Near the campus of Tufts University, members held a “Death to the Middle Class” funeral procession, highlighting the university’s refusal to pay area standard wages on its construction projects.

Missouri—Members of the Mid-America Carpenters Regional Council took part in a demonstration at the state capitol in Jefferson City. Workers also demonstrated in St. Louis, Kansas City, Topeka, Cape Girardeau, Washington, Hillsboro, Imperial, Wentzville, St. Charles and Ellisville.

New York City—The New York City District Council of Carpenters hosted over 2,000 members at a demonstration and march that almost completely encircled the iconic New York Public Library in Manhattan. Speakers included Bronx DA Darcel Clark.

Illinois—The Mid-America Carpenters Regional Council continued its tradition of bringing together members at scores of locations in the state to demonstrate against fraud. Actions were held at numerous Chicago locations, and in Niles, Rolling Meadows, Palatine, Schaumberg, Joliet, Rockford, Marion, Belleville and many others.

Iowa—MACRC members participated in actions in Iowa City, Des Moines, Bettendorf and Davenport.

Winnipeg, Manitoba—Provincial Minister of Labour and Immigration Malaya Marcelinio to visited the monthly membership meeting of Millwrights Local 1443 to discuss the Tax Fraud Days Of Action campaign.

New York State—Workers and supporters held rallies and bannering events in cities and towns including at the State Capitol in Albany and in Goshen, Ithaca, Binghamton, Buffalo, Syracuse, Hauppauge, Mineola, Rochester, Plattsburgh and Utica.

Hawaii—Members of the Hawaii Regional Council of Carpenters held signs at the state capitol in Honolulu, and the council held a press conference inside the capitol to call attention to construction industry tax fraud and legislative solutions.

Utah—In Salt Lake City, members of the Western States Regional Council of Carpenters took part in a mock signing of a bill stiffening workers’ compensation and workplace standards on public projects.

Connecticut—The North Atlantic States Regional Council of Carpenters (NASRCC) held four events in the state capital, Hartford, culminating in a rally and Lobby Day in support of HB 5275, which is “Up the Chain” legislation mandating accountability for upper-tier contractors and employers when their subcontractors break the law.Members were joined by Governor Ned Lamont, State Senator Julie Kushner and Representative David Rutigliano.

Rhode Island—The North Atlantic States Regional Council of Carpenters hosted a press conference and lobbying event to advocate for passage of “up-the-chain” accountability legislation in the state legislature. Attorney General Peter Neronha and Lt. Governor Sabine Matos participated in the press conference.

Massachusetts—In Boston, NASRCC members took part in a Workers’ Compensation Legislative Education Day, visiting lawmakers to promote a bill reforming insurer practices that enable premium fraud.In Burlington, Framingham, Springfield and Worcester, members held rallies and held banners protesting fraud.

Maine and New Hampshire—Members of the NASRCC demonstrated against tax fraud outside jobsites in Portland, Maine; and Manchester, New Hampshire.

Oakland County, Michigan—Representatives of the Northern Midwest Regional Council toured a construction site “crime scene” with Oakland County Prosecutor Karen McDonald.

Eastern Atlantic States—The Eastern Atlantic States Regional Council of Carpenters (EAS) hosted an online forum with the attorneys general and assistant attorneys general for the District of Columbia, Delaware, New Jersey, and Pennsylvania.

District of Columbia, Maryland, Virginia, West Virginia—EASRCCmembers held an event to educate members of the House of Delegates in St. Albans, West Virginia. Members also held events in Ashland, Virginia; Oakland, Maryland; and Washington, D.C.

New Jersey and Pennsylvania—EASRCCmember actions took place at jobsites in Newark and Camden, N.J. to protest alleged worker exploitation. Members also attended rallies in Philadelphia, Scranton, Berwick and Duncansville, Pa., while council representatives testified in front of the Pittsburgh City Council.

Ontario, Canada—Members of the Millwright Regional Council held an educational meeting with Jeff Burch, a member of the Provincial Parliament, about tax fraud and solutions. In Hamilton, Local 1916 representatives met with Marit Stiles, leader of the NDP, the official opposition party leader in the province. The meeting included a tour of the training center, a media release from the NDP in support of Tax Fraud Days of Action and a discussion about the underground economy in Ontario.

Kentucky—The Central Midwest Regional Council of Carpenters released a video featuring the story of a Paducah contractor that has suffered losses due to unfair practices of lawbreaking contractors.

Oregon and Washington StateMembers of the North Coast States Regional Council of Carpenters rallied at Portland City Hall. In Seattle, members took part in a rally at City Council Plaza, with speakers including Attorney General Nick Brown, Everett Mayor Cassie Franklin and members of city councils in Seattle and surrounding communities.

Southern California—The Western States Regional Council facilitated video interviews of numerous public officials discussing the fraud crisis, including Buena Park Mayor Connor Traut, Congressman Derek Tran, Anaheim Mayor Ashley Aitken, President of Union High School District Jessica Guerrero and Orange County Deputy District Attorney Raymond Ruiz regarding how tax fraud has impacted their communities.

In addition, members attended official meetings and addressed members of the Compton School Board and city councilmembers in Culver City, Moreno Valley, Riverside, Garden Grove, Tustin, Buena Park, Inglewood and Long Beach.

Indiana—In Merrillville,members of the Central Midwest Regional Council of Carpenters held an event in support of Lake County Councilmember Randy Niemeyer, who is championing a measure promoting Project Labor Agreements for public construction.  In Indianapolis, Attorney General Todd Rokita accompanied council representatives on a jobsite visit to showcase what responsible, law-abiding contracting looks like in practice. Following the tour, he participated in a press conference to report his findings, which drew strong media interest. In Lafayette, representatives of the Central Midwest Regional Council of Carpenters hosted State Representative Craig Haggard for a series of jobsite visits where he witnessed individuals being paid cash under the table, the use of undocumented labor and instances of check fraud on construction sites. Rep. Haggard later appeared on WIBC to report on his findings.

Wisconsin—The Northern Midwest Regional Council of Carpenters held a “Making the Cut” hiring event in partnership with the Milwaukee Brewers, where a booth dedicated to Tax Fraud Days of Action brought visibility to the issue of construction employer tax fraud.

Members participated in more than 150 Tax Fraud Days of Action events with extensive publicity on social media. But our fight for justice for carpenters isn’t just a one-day or two-week campaign. We do this work every day.  We will not give up.

Keep up with the ongoing fight at StopTaxFraud.net.