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HOME - FACTS - TABLES - VIDEOS - INFOGRAPHICS - AGENCIES - RESEARCH <br />Phillips, Zachary. (2021). "New York State Legislature Passes Construction Wage Theft Bill." Construction <br />Dive. <br />Key Finding: The New York State Senate and State Assembly passed legislation Wednesday that shifts liability to general <br />contractors for wage theft cases on private construction projects. It made New York the 6th state, in addition to <br />Washington, D.C., to adopt this type of protective wage theft for construction workers. <br />Shapiro, Josh. (2021). "Hawbaker Sentenced, Will Pay Workers More than $20 Million in Stolen Wages." <br />Pennsylvania Attorney General. <br />Key Finding: Attorney General Josh Shapiro sentenced Glenn O. Hawbaker, Inc. for theft relating to violations of the <br />Pennsylvania Prevailing Wage Act and the federal Davis -Bacon Act. The plea includes paying $20,696,453 in stolen wages <br />to 1,267 Pennsylvania workers. Hawbaker is one of the largest contractors to complete projects on behalf of the <br />Commonwealth, receiving an estimated $1.7 billion in contracts between 2003 and 2018. The restitution is for the largest <br />prevailing wage criminal case in U.S. history. Hawbaker pleaded to four felony counts of stealing wages from its workers. <br />Department of Workforce Development (DWD). (202` ). Payroll Fraud and Worker Misclassification <br />Report: 2021. State of Wisconsin. <br />Kev Finding: This is a report from the Task Force on Payroll Fraud and Worker Misclassification. In 2020, Wisconsin <br />Unemployment Insurance (UI) Division auditors conducted nearly 1,300 audits and identified 8,900 misclassified workers, <br />generating $2.34 million in Ul taxes and interest. The task force recommends creating a new Insurance Fraud Bureau of <br />Investigations and developing a statutory requirement of upstream liability, among other recommendations. <br />Jacobs, Ken and Kuochih Huang. (2021). The Public Cost of Low -Wage Jobs in California's Construction <br />Industry. University of California, Berkeley. <br />Kev Finding: 48% of families in which at least one adult who works in construction are enrolled in public safety net programs <br />such as Medicaid, CHIP, EITC, and SNAP at an estimated annual cost of $3 billion. <br />Goodell, Nathaniel and Frank Manzo IV. ( ). The Costs of Wage Theft and Payroll Fraud in the <br />Construction Industries of Wisconsin, Minnesota, and Illinois: Impacts on Workers and Taxpayers. Midwest <br />Economic Policy Institute. <br />Kev Finding: When compared to employees doing similar work, independent contractors earn about 30% in total <br />compensation in the construction industries of Wisconsin, Minnesota, and Illinois. This includes 13%-22% less in annual <br />wages and 62%-66% in total benefits. Wage theft and payroll fraud cost a total of $362 million in lost state income taxes, <br />unemployment insurance contributions, and workers' compensation premiums in these three states every year. <br />Hinkel, Matthew. (2021). The Effect of Prevailing Wage Laws on Informal Construction Employment. Alma <br />College. <br />Kev Finding: From 2010 through 2019, worker misclassification and off -the -books employment was 2% lower for <br />construction workers in states with prevailing wage laws. Lower prevailing wage contract coverage thresholds were also <br />linked with significant decreases in misclassification and off -the -books employment because more state and local projects <br />are covered, leaving fewer workers vulnerable to exploitative practices and governments less vulnerable to payroll tax <br />fraud. By improving transparency, accountability, and enforcement on public works projects, prevailing wage laws protect <br />workers from illegal labor practices. <br />Rhinehart, Lynn; Celine McNicholas; Margaret Poydock; and Ihna Mangndayao. (2021). Misclassification, <br />the ABC Test, and Employee Status: The California Experience and Its Relevance to Current Policy Debates. <br />Kev Finding: Federal and state policymakers should adopt the ABC test in their labor and employment laws to ensure <br />workers are not misclassified, and are covered by important workplace rights and protections. <br />Gerstein, Terri. (2021). How District Attorneys and State Attorneys General Are Fighting Workplace <br />Abuses. Economic Policy Institute. <br />Kev Finding: District attorneys (DAs) and state attorneys general (AGs) have been bringing criminal prosecutions against <br />law -breaking employers. This development is particularly important in light of limits in worker protection laws, <br />underfunding of labor enforcement agencies, and employers' increasing use of forced arbitration clauses. <br />51 <br />