GOSHEN – Carpenters union officials and government leaders on the state and local level highlighted efforts to combat tax fraud, wage theft, and other labor crimes during a conference held by Orange County District Attorney David Hoovler.
Each year tax fraud in the construction industry costs Americans $8.4 billion. Much of this fraud occurs through paying employees “off-the-books,” misclassification of workers, and improperly treating employees as independent contractors when they are actually employees who are entitled to all the benefits and protections that state law affords, noted Hoovler.
He said unscrupulous contractors who cheat have a competitive benefit over honest contractors who play by the rules. Employees who are paid off the books suffer from not being able to obtain overtime and other benefits and must often pay additional taxes that should be borne by the employers.
Since march 2015, the DA’s office has operated a Labor Crime Tip Line dedicated to receiving reports of crimes involving the workplace, particularly crimes involving failure to pay proper wages, unsafe working conditions, prevailing wage violations, workers compensation fraud, and other crimes where either employees or the government have been victimized. The tip line is 845-291-2107.
“For far too long, dishonest contractors have cheated their workers and left taxpayers holding the bag,” said Bill Banfield, assistant to the executive secretary treasurer of North Atlantic States Regional Council of Carpenters. “This year on Tax Day, union carpenters across New York are standing up for their communities, for working families, and for honest business owners by demanding accountability and fairness in the construction industry. We are proud to participate in the nationwide Tax Fraud Days of Action and we are confident that these efforts will shed much-needed light on the issues of tax fraud and wage theft on behalf of all those affected.”
