CHAMPAIGN, IL – State Representative Brandun Schweizer joined members and representatives of Carpenters Local 243 earlier this month at a mixed-income private residential development in Champaign to observe a job site where the union has raised concerns about possible worker misclassification and construction tax fraud.
The project is a new 150-unit residential community currently under development. Carpenters Local 243 reports it has received statements from workers indicating they are being treated as independent 1099 contractors and paid less than $30 per hour for wood framing work.
Because the project is a private residential development, prevailing wage requirements do not apply. However, union representatives emphasized that the absence of prevailing wage laws does not permit contractors to misclassify employees, avoid payroll taxes, or shift business costs onto workers.
“Misclassification is one of the most common forms of construction tax fraud,” said Local 243 Representative Joshua Robertson. “When workers are treated like independent contractors but perform the duties of regular employees, responsible contractors are undercut, workers are denied basic protections, and local communities lose out on tax revenue that funds schools, roads, public safety, and essential services.”
Rep. Schweizer’s visit was part of the Mid-America Carpenters Regional Council’s Tax Fraud Days of Action, a statewide and national effort to educate elected officials, taxpayers, and the public about the impact of illegal labor practices in the construction industry.
Across the industry, worker misclassification and other forms of tax fraud can allow bad actors to avoid paying unemployment insurance, workers’ compensation premiums, payroll taxes, Social Security, and Medicare contributions. It is estimated that construction industry tax fraud costs the state of Illinois more than $400 million in lost tax revenue each year.
“I appreciated the opportunity to stand with Local 243 and see firsthand what members are up against,” said Rep. Schweizer. “This is not about one job or one contractor. It is about protecting workers, supporting honest contractors, and making sure everyone is playing by the same rules.”
Carpenters Local 243 said it will continue monitoring job sites, speaking with workers, and working with public officials to bring attention to suspected tax fraud and ensure proper worker classification.
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