America's Work Force Union Podcast

For some construction firms, wage theft is a business model

Written by awfblog | July 20, 2022

Adam Duininck, Director of Government Affairs for the North Central States Regional Council of Carpenters, joined the America’s Work Force Union Podcast and discussed the alarming prevalence of wage theft in the construction industry.

Duininck said incidents of wage theft are surprisingly common in the construction industry and can even be viewed as a business model for nefarious companies who want to cut costs in order to boost profits. He explained how many LLCs avoid taxes, do not pay into workers’ compensation and avoid other legal responsibilities through fraudulent work systems that pay cash under the table to workers, who are often undocumented.

He pointed to a recent case where 40 workers who performed work at the Viking Lakes development, a property owned by the family who owns the Minnesota Vikings, claimed to be victims of over $100,000 in wage theft.

Listen to the entire episode to learn more about the problem of wage theft.