Payroll fraud has long been the construction industry’s “dirty little secret.” The UBC is helping officials around the country to bring it into the light and make our construction markets fair and honest again.
Unscrupulous employers gain up to a 30 percent bidding advantage when they evade paying workers' comp, unemployment insurance, and basic payroll taxes by knowingly misclassifying workers as independent contractors, paying in cash off the books, and running other scams—often several at the same time.
The UBC knows that union productivity makes our contractors’ bids competitive—but only on a level playing field, where no one is breaking laws to gain an unfair advantage.
The UBC provides legislators and agency leaders with research, resources and professional assistance to learn about and crack down on payroll fraud criminals. Officials in nearly three dozen states have improved laws and enforcement and are annually recapturing tens of millions in previously lost revenue. Workers comp rates are dropping in some cases as well.
Fraud is not a union-only issue. It’s about regaining lost tax revenue and insurance-fund premiums; protecting honest employers and average taxpayers; and shutting down rampant, widely destructive criminal activity. Payroll fraud affects every taxpayer, the entire industry, our shrinking public budgets, an even healthcare costs.
We urge you to visit the PayrollFraud.net resource pages.
- Watch a video overview and download the concise print summary.
- Read the latest news on legislation, prosecutions, and other current action.
- Examine the growing body of research and data on the enormous costs of payroll fraud.
- Use enforcement resources such as state websites, IRS and USDOL forms, and more.
- Get copies of court documents from the growing number of prosecutions.
Together, we can support our public officials to end this ill-gotten advantage and open up more opportunities for honest employers and honest workers.