Report Shows Wide-Spread Fraud in Texas Construction Hiring

February 4, 2013

A study of the Texas construction industry found that forty-one percent of construction workers are victims of payroll fraud, in that they are "misclassified as independent contractors or paid off the books in cash. More than half earned too little to put them above the poverty level. Twenty-two percent had been denied wages.

The study found that the problems stem from a construction industry that is "highly dependent on a foreign-born workforce." Many of these workers are undocumented, taking jobs at wages that violate state employment laws.

The San Angelo Standard Times reports that State Representative Joe Deshotel has proposed the "Workplace Fraud Prevention Act" which would impose penalties on contractors who hired workers under the table or misclassified workers as independent contractors.


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