Construction Tax Fraud in America: Why Union Workers & Contractors Must Take Action Now

By the ULA Network | Supporting, Educating, and Promoting Union Labor & Our Communities

The Union Labor Advisory Network (ULA Network) is proud to stand alongside industry leaders, union members, and advocates in raising awareness around one of the most critical issues impacting the construction industry today: tax fraud and worker exploitation.

As highlighted by the United Brotherhood of Carpenters (UBC), the fight against construction employer tax fraud is not new—it is a decades-long battle rooted in protecting workers, supporting responsible contractors, and strengthening our communities.

A Call to Action: Tax Fraud Days of Action (April 6–18)
From April 6 through April 18, UBC members and supporters across North America will mobilize for the Tax Fraud Days of Action—a coordinated effort to bring visibility to illegal practices that harm workers and undermine fair competition.

👉 Learn more and get involved:
🔗 https://www.stoptaxfraud.net/standup

This campaign is about more than awareness—it’s about driving real change.

Why This Fight Matters
Tax fraud in construction is not a victimless issue. It impacts:
• Workers who are denied fair wages, benefits, and protections
• Honest contractors who struggle to compete against those cutting corners
• Taxpayers and communities who absorb billions in losses

According to research cited by UBC and organizations like The Century Foundation:

• Up to 2.1 million U.S. construction workers are misclassified or paid off the books
• Workers can lose $10,000–$17,000 annually due to misclassification
• $10 billion per year is lost in tax fraud across federal and state systems
• Taxpayers absorb $28 billion annually in public assistance tied to low-road employment practices

These are not just statistics—they represent real families, real careers, and real communities being impacted.

Understanding the Problem: What Does Tax Fraud Look Like?
Illegal practices in the construction industry include:
• Wage theft and unpaid overtime
• Worker misclassification (independent contractor abuse)
• Paying workers “off the books”
• Workers’ compensation fraud
• Payroll tax evasion
• Labor trafficking and exploitation
• Unsafe jobsite practices

These actions don’t just hurt workers—they erode the integrity of the entire industry.
Progress Being Made—But More Work Ahead

There has been meaningful progress:
• “Upper-tier liability” laws now exist in 10 U.S. states and Washington, D.C., holding general contractors and project owners accountable for subcontractor violations
• Increased enforcement efforts from district attorneys and attorneys general
• Growing awareness and advocacy across unions and industry groups
• However, systemic challenges remain, and continued advocacy is essential.

Why This Aligns with the ULA Network Mission
At the ULA Network, our mission is clear:
To support, educate, and promote union labor while strengthening pathways to middle-class careers and thriving communities.

The fight against tax fraud directly aligns with that mission by:
• Protecting fair wages and benefits
• Promoting safe, skilled, and career-driven union jobs
• Supporting ethical contractors and economic development
• Ensuring a level playing field across the industry
• What This Means for Union Leaders, Partners & Communities

This is a moment of leadership.
Union leaders, policymakers, and industry partners have an opportunity to:
• Advocate for stronger enforcement and legislation
• Educate members and communities about worker rights
• Support initiatives that promote transparency and accountability
• Partner with organizations advancing ethical labor standards

For ULA partners and sponsors, this also represents an opportunity to align with a values-driven movement that supports workforce development, economic growth, and community impact.

A Collective Responsibility
The reality is simple:
We cannot build strong communities on a broken system.
When workers are exploited, everyone pays the price. But when we stand together—labor, leadership, and community—we create opportunity, fairness, and long-term economic stability.

Join the Movement
The ULA Network encourages all members, partners, and supporters to stand up and take part in this important initiative.

📅 Tax Fraud Days of Action: April 6 – April 18
🔗 Get involved: https://www.stoptaxfraud.net/standup

Source & Attribution
This blog is informed by and supports the advocacy efforts of the United Brotherhood of Carpenters (UBC) and their Tax Fraud Days of Action campaign.

For original content and additional resources, please visit:
🔗 https://www.stoptaxfraud.net

About the ULA Network
The Union Labor Advisory Network (ULA Network) is dedicated to supporting, educating, and promoting union labor, skilled trades, and public sector careers through media, partnerships, and community engagement.

#UnionStrong #StopTaxFraud #BuildTheFuture #ProtectWorkers #ULANetwork