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WE MUST STOP WAGE THEFT THAT
THREATENS NEW YORK’S WORKING CLASS
BY JOSEPH A. GEIGER Wage theft has victimized
the working class
for far too long. For decades,
crooked contractors
have flown under the radar
in broad daylight and built
their million-dollar bank accounts
by stealing the wages
of workers who don’t know
their rights or are too afraid
to report the crime.
The fear of being fired or
blackballed for speaking up
by powerful contractors has
scared many of these workers
silent. We must put the lives
and dignity of our fellow New
Yorkers ahead of contractor
greed and end wage theft once
and for all.
The construction industry
creates thousands of jobs and
builds critical infrastructure
that is vital to New York’s
recovery. Developers eager
to squeeze every last cent of
profit from their workers have
unleashed an exploitation epidemic,
paying their workers
a quarter (if they’re lucky) of
what they would make under
a prevailing wage, if they’re
getting paid at all.
When a worker is cheated
out of their wages, we all
suffer: the worker and their
family have to choose between
paying rent or buying
food, wages across the
industry are depressed, and
New York City loses critical
tax revenue. The fact is that
wage theft is a direct threat
to the stability of New York
City’s economic well-being
and our recovery from the
pandemic.
The ripple effects of wage
theft are felt not just in New
York, but throughout the
economy. Across the nation,
workers and their families
lose $8 billion a year to wage
theft, and construction workers
alone are robbed of $946
million annually.
A study conducted by the
United Brotherhood of Carpenters
also found that corrupt
contractors withheld at
least $811.1 million a year in
overtime pay. These staggering
numbers bring to light
not one or two bad apples, but
of a system that exploits the
working class without fear of
consequences.
They say that “one bad apple
can spoil the bunch.” That
is true with another moneymaking
scheme used by some
thieving contractors.
Wage theft goes hand-inhand
with tax fraud, which is
reported on roughly 20.5% of
construction sites per month.
Every year, unscrupulous
employers offload $3.5 billion
of businesses’ employment
taxes onto workers, leading to
a total of $8.4 billion in state
and federal tax losses.
That’s billions of dollars
that should be funding local
schools, infrastructure, and
health care. When there are
billion-dollar tax gaps like
the ones left by wage theft
and tax fraud, it’s the everyday
taxpayer that picks up the
bill. These crimes aren’t only
hurting the construction industry,
they are crippling entire
communities.
It’s time these bad actors
stop cheating the system,
stealing wages out of working
people’s pockets, and corrupting
our entire economy.
Allies for the working
class like Senator Jessica Ramos
and Assembly Member
LaToya Joyner have stepped
up in the New York State
Legislature by introducing
S.2766/A.3350 to combat this
incessant violation of workers’
rights. Their bill aims
to end wage theft at the top,
where the liability resides. It
will ensure all workers have
protection when their employer
tries to steal their paycheck.
Under S.2766/A.3350,
wage-stealing practices will
be met with legal repercussions.
Construction bosses
will not be able to turn a blind
eye to these illegal practices
and will finally be held accountable
for what happens
on their job sites. That accountability
will lead to more
extensive vetting of contractors
and sub-contractors,
safer worksites and workers
bringing home the full wages
they deserve.
Meanwhile, contractors
who have done the right thing
will see no change beyond finally
having a shot to compete
on a level playing field.
The District Council believes
in the ideal that a hard
day’s work gets a fair day’s
pay, no questions asked. It is
committed to advocating for
all workers in the construction
industry, both union and
non-union, to ensure jobs,
fair wages, and safe job sites.
Now, it’s time for the politicians
in Albany to do the
right thing for their constituents
and pass the wage theft
legislation championed by
Senator Ramos and Assembly
Member Joyner that protects
the livelihoods of hard-working
New Yorkers.
Now more than ever as
we hope to rebuild back better,
we must change the culture
of greed and hold the bad
accountable. We must pass
S.2766/A.3350 and end wage
theft now.
Joseph A. Geiger is the executive
secretary-treasurer
of the New York City and Vicinity
District Council of Carpenters.
Schneps Media May 27, 2021 17