Report: Construction Contractors Cheating Workers, Taxpayers (PA)

By John Nichols
JANUARY 7, 2019

January 14, 2019

HARRISBURG, Pa. – Unscrupulous contractors in southeast Pennsylvania routinely are violating labor laws and victimizing customers, including state and local government, according to a new report.

The report from the Keystone Research Center found many contractors in the regional Philadelphia construction industry are in a race to the bottom.

Stephen Herzenberg, author of the report, calls that “destructive competition” – cutting costs by misclassifying workers as independent contractors, cheating them out of overtime pay, investing little in worker skills and in some cases operating unsafely.

“When construction contractors and subcontractors compete by violating the law, wage theft, threatening workers’ health and safety, in the end nobody else wins,” he states.

The report says imposing stiffer penalties for labor law violations and directing more resources to enforcement agencies would help safeguard workers, law abiding contractors and taxpayers.

Herzenburg points out that effective enforcement can pay for itself by directing revenue from fines and penalties to enforcement agencies, and it can change the current landscape of the construction industry.

(Visit the Keystone Research Center Website)

(View PDF copy of Study – Illegal Labor Practices in the Philadelphia Regional Construction Industry: An Assessment and Action Plan)

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