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WFAA Follow Up Report on Misclassification in Texas Construction

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.  

This is a widespread issue in Texas and needs to be addressed and the existing rules enforced.  We will watch this one to see whether the Texas Workforce Commission takes action, whether the General Contractor in this case really does the audit of their subs as he says in the interview and whether we can move this issue forward on this and other projects.

Watch the 3¼ minute video report:

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