WFAA TX Misclassification reports

On July 13, Construction Citizen shared a story first reported by Dallas/Fort Worth television station WFAA about misclassification of workers on a school construction project.  Last week, the same WFAA reporter submitted an update to the story.

The original story featured a subcontractor who lost the bid for work on Mansfield Independent School District’s Center for the Performing Arts to a competitor who does not pay payroll taxes, unemployment tax, or workers’ compensation insurance.  Following the investigation and airing of the story, the Texas Workforce Commission (TWC) charged Mireles, the subcontractor who was hired for the project but did not pay those taxes, for Read more »

The first investigative report by David Schecter at WFAA in Dallas/Fort Worth drew quick reaction from other subcontractors and from legislators in Austin.  In a follow up report which aired Friday evening, Schecter talks with several specialty subcontractors, with the chairman of the Senate Business and Commerce Committee and with a key member of the House about the issue of non payment of taxes by some subcontractors who misclassify their workers as independent contractors as a way to avoid payment of payroll taxes, unemployment taxes and worker’s comp insurance.   Read more »

WFAA News 8 TV in Dallas/Fort Worth aired an investigative report last night by David Schecter about the plight of worker misclassification in the Texas construction industry, and the lack of law enforcement by local and state entities.

Mansfield Independent School District’s $39 million Center for the Performing Arts currently under construction contracted with AB Rebar for part of the project.  Owner Macario Mireles was able to offer the lowest bid for the work because he pays his employees as independent contractors and does not pay payroll taxes, unemployment tax, or workers’ compensation insurance on behalf of them.   Read more »