Carpenters fighting worker misclassification in construction industry

John Jarger, Director of Operations for the Mid-America Carpenters Regional Council (MACRC), joined the America's Work Force Union Podcast to discuss the financial impact of worker misclassification, the proactive measures being taken by the United Brotherhood of Carpenters and Joiners of America and the importance of legislative action to combat these challenges.

Jarger began by explaining how worker misclassification and cash payments have led to billions in lost tax revenue. He discussed conservative estimates that suggest annual losses of up to $15 billion due to these practices. Worker misclassification not only affects state and federal tax revenue but also results in substantial losses in workers' compensation and overtime wages. Jaeger discussed some of the Carpenters’ efforts to address this issue, including raising awareness and pushing for responsible bidder ordinances to ensure fair practices in awarding contracts.

On a regional level, Jaeger said the MACRC is actively engaging in outreach efforts to combat tax fraud. Jarger explained that the union organizes Tax Fraud Days of Action, targeting public spaces and job sites where fraudulent practices are suspected. These events aim to educate the public and stakeholders about the financial and ethical implications of tax fraud. By holding demonstrations at strategic locations, Jarger said the union seeks to draw attention to the issue and encourage community and governmental support for stricter enforcement of labor laws.

Jarger emphasized the need for state governments to implement policies that clamp down on employers who misclassify workers or pay them off the books. While some states have made progress, there is still a long way to go to ensure that all workers are classified correctly and receive the benefits and protections they deserve. Jaeger said the Carpenters’ political department continues to advocate for stronger legislation to protect workers and ensure fair competition in the industry.

To learn more about the Carpenters Union’s fight against worker misclassification in construction, listen to the full episode above with Jarger.