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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The Fight Against Employer Tax Fraud Goes On: We’re Not Backing Down!

Members of UBC councils throughout the U.S. and Canada are determined to show that, until employer tax fraud in the construction industry is eradicated, we will not give up the fight.

This year’s Tax Fraud Days of Action, April 12–18, featured over 150 events in large cities and small towns, in both countries, outside of worksites, in the halls of government and in many public locations. It’s all part of the campaign to shine a spotlight on the perpetrators of crimes and shady business practices that have put the construction industry in crisis.

Thousands took part in rallies, public forums, jobsite visits with elected officials and other events to protest the fraud crisis that exploits vulnerable workers, undermines law-abiding contractors and steals resources from taxpayers.  

“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 citizens in the U.S. and Canada.”

Employer tax fraud is a broad category of wrongdoing that includes outright wage theft, off-the-books payments, misclassification of employees as independent contractors, the use of labor brokers and layers of crooked subcontractors, shady banking practices, mail and wire fraud, refusal to deduct and pay payroll taxes like Medicare and Social Security, labor trafficking and workers compensation employer premium fraud.  

As many as 2.1 million construction workers, or 19 percent of the construction workforce, are misclassified as independent contractors or paid off the books—and workers suffer $1.9 billion in overtime wage theft. The resulting state and federal tax losses from construction employer fraud reach $10 billion a year. Shady practices also result in crooked employers raising taxes for working families to the tune of $5.1 billion a year by shifting their half of employment tax obligations onto the backs of their workers. 

Tax fraud is a scourge in Canada as well. In Ontario, $3.1 billion is lost every year, while the number is $1.5 billion in Quebec.  

In addition, the University of California Berkeley Labor Center found that 39 percent of U.S. construction worker families, about 3 million, rely on one or more taxpayer-funded safety-net programs including Medicaid, the earned income tax credit, temporary assistance for needy families and federal nutrition assistance, costing state and federal taxpayers $28 billion a year.  

The researchers attribute the numbers, which are higher than those for all workers, to low pay, wage theft and illegal employment practices.  We are all subsidizing the low-road behavior of crooked contractors.  

Here are examples of 2025 Days of Action events and accomplishments:   

Ontario, Canada—Representatives in the Canadian District met with the new Prime Minister of Canada, Mark Carney, to discuss employer tax fraud and solutions.

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 front of the main post office in St. Louis, as well as at public locations in Ellisville, Afton, St. Charles, St. Peters, De Soto, Troy and Wentzville. In addition, Kansas City Mayor Quinton Lucas addressed council delegates at a Days of Action kickoff event. 

Sacramento—Hundreds of members of the Northern California Carpenters Regional Council gathered on the steps of the state capitol in Sacramento at an event featuring State Senator Jesse Arreguin, Sacramento County District Attorney Thien Ho and Deputy Commissioner Eric Charlick of the California Department of Insurance, Enforcement Branch.

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

Hawaii—Wearing “Carpenters In Action” t-shirts, members of the Hawaii Regional Council of Carpenters demonstrated at the state capitol in Honolulu. In an interview with council representatives, Jerry Bump, the state’s Acting Insurance Commissioner, stated that workers’ compensation premium fraud “undermines the financial integrity of the insurance system” and negatively impacts workers as well as honest businesses.

Atlanta—Members of the Southeastern Carpenters Regional Council held a job site demonstration to educate the public about construction industry tax fraud in the city.

Connecticut, Massachusetts and New Hampshire—Members of the North Atlantic States Regional Council of Carpenters demonstrated against tax fraud in Salem and South Portland, New Hampshire; Bridgeport, Connecticut; and in Lexington, Springfield and Worcester, Massachusetts.

Eastern Atlantic States—The Eastern Atlantic States Regional Council of Carpenters hosted an online forum with the Attorneys General of the District of Columbia, Delaware, Maryland, New Jersey and Pennsylvania, to update the AGs about the current state of the crisis and discuss measures to eradicate fraud.  A rally was also held to protest fraud in the District of Columbia.

New York City—The New York City District Council of Carpenters hosted two thousand members at a demonstration in front of the iconic New York Public Library in Manhattan. Speakers included Brooklyn District Attorney Eric Gonzalez, Queens Borough President Donovan Richards and several members of the New York City Council.

Illinois—The Mid-America Regional Council of Carpenters continued its tradition of bringing together members at scores of locations in the state to demonstrate against fraud. Actions were held at several Chicago post offices and other locations, and in Champaign, Aurora, De Kalb, Loves Park, Matteson, Moline, Oak Lawn, Oregon, Orland Park, Peoria, Rock Island, Rolling Meadows, Schaumberg and Skokie.

Iowa—Events in Iowa included demonstrations and actions in Ankeny, Bettendorf, Cedar Rapids, Davenport and Iowa City.

Kentucky—Representatives of the Central Midwest Regional Council of Carpenters visited jobsites with local elected officials in Lexington to discuss the tax fraud crisis, and a second event was held in Louisville.

Minnesota—In Burnsville, members of the North Central States Regional Council of Carpenters held a demonstration at a jobsite run by Absolute Drywall, to protest shady business practices.

Michigan—State Senators Darrin Camilleri and Kevin Hertel met with carpenters and contractor Evan Howe of Integrity Interiors in a press conference in Lansing about the introduction of legislation to curb fraudulent employment practices.

Arizona—In Phoenix, Governor Katie Hobbs recorded a video statement about the impact of tax fraud on transportation, and Attorney General Kris Mays recorded a message about the impact of fraud of the state’s water system. The Western States Regional Council of Carpenters also released videos about fraud’s impact on first responders, education and public safety.

Miami—Carpenters and staff from the Florida Carpenters Regional Council informed the public about construction employer tax fraud outside of the Dade County courthouse.

British Columbia—Representatives of the Carpenters Regional Council held meetings in Fort St. John, Vancouver and Victoria, to discuss construction employer tax fraud with legislative member (MLA) Jordan Kealy; Tyler Norman chief of staff in the provincial Ministry of Finance; Tim Rennberg, chief of staff in the Ministry of Labour; Christina Ilnitchi, advisor to the Minister of Education and Childcare; and Amber Keane, Director of Special Projects for Premier David Eby.

North Dakota—Representatives of the North Central States Regional Council held meetings to discuss construction employer tax fraud and solutions with Governor Kelly Armstrong and Secretary of State Michael Howe.

Louisiana—Central South Carpenters Regional Council political director Gary Warren met with a Gulf Coast Band & Trust Company representative about tax fraud, the FinCEN notice and making referrals about suspected crooked contractors.

Washington State—Members of the Western States Regional Council in Spokane made a presentation on employer tax fraud to the Spokane City Council.

Southern California—The Western States Regional Council facilitated video interviews of numerous public officials discussing the fraud crisis, including school board members, transportation and utility officials and others, in Alhambra, Buena Park, Carson, Covina, Culver City, El Monte, Long Beach, Pomona, Redondo Beach, Orange County, San Bernardino and Ventura.

Wisconsin—In Appleton, Madison and Green Bay, representatives of the North Central States Regional Council of Carpenters hosted ride-alongs to jobsites with local elected officials to educate them about the fraud playbook. Additional protests and job actions occurred in Brookfield and Brown Deer.

Manitoba—Representatives of the Carpenters Regional Council met with a group of   members of the legislative assembly in Winnipeg.

Ohio—The Central Midwest Regional Council of Carpenters held an interview about tax fraud with Ohio Congresswoman Emilia Sykes in Columbus and held other events in the capital city.

Rhode Island—The North Atlantic States Regional Council of Carpenters hosted a press conference to advocate for passage of the Construction Industry Paycheck Recovery Act in the state legislature.

Tennessee—In Nashville, members rallied in front of the downtown post office to educate the public.

Saskatchewan—Events in Saskatoon and Regina with public officials, hosted by the Carpenters Regional Council included discussion of tax fraud’s impact on workers’ ability to make good wages.

Visit the Wrap-Up page to view the 2025 Days of Action Wrap-Up Video, as well as photos from regional councils.