HARTFORD, Conn. — The North Atlantic State Regional Council of Carpenters rallied in Downtown Hartford Monday to bring awareness to tax fraud in the industry across the state.
A new report by the Century Foundation estimates that 30,000 construction workers in Connecticut are being taken advantage of by their employers. The union says this is a growing issue across the state where workers are underpaying them, not paying them overtime or even classifying their employees as independent contractors.
Workers and their families are forced to fit the bill for taxes their employer should have covered, according to the union.
The group gathered on Palaski Circle outside of a building that was forced to stop work due to these violations.
“There was a DOL investigation, it shut the job down. No one was in compliance, made in cash payment, none of the burdens were being paid, none of the taxes the workers comp, so they shut it down,” said Miguel Fuentes, a representative of NASRCC.
Local contractors say these practices are costing them business because the companies or contractors are offering cheaper prices to customers.
“We started losing to labor costs and when you look at labor costs…carpenters make what carpenters make, but then there's other things involved workers comp, your payroll tax, these other things that can involve that really drive the wage of a carpenter,” said Ben Whelan, a residential contractor on the shoreline.
Whelan said this makes it nearly impossible to compete and hopes to see more accountability from state agencies.
He also said customers can ask the company how they classify workers before hiring them for a job.
“Whether it's the building department, the Department of Labor, the laws are there, they just need to be enforced and if they're not being enforced, people should be asking the question of their contractors that are coming through the door,” said Whelan.
Former Hartford Mayor Luke Bronin said this is critical for the local economy.
“Pay fair wages, pay them legally, pay your insurance, pay your taxes, and build up communities the right way in a way that allows us to build up the middle class allows you to lift up your families allows all of us to do better,” Bronin said.
The full report by the Century Foundation can be found here.
Jake Garcia is a multimedia journalist for FOX61 News. He can be reached at jgarcia@fox61.com. Follow him on Facebook, Twitter, and Instagram.
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