Underground Construction Economy Study 2019 Update
Masonry Contractors of New Jersey teamed up with the same labor leaders and association for Stockton University to provide an updated study of the Underground Construction Economy in New Jersey. Misclassification of employees as independent contractors and the entire underground construction economy in New Jersey are running rampant. The study reveals detailed findings of approximately 38,870 workers (17,670 in the misclassified category and 21,200 in the off the books category) that are likely involved in some way in New Jersey’s Underground Construction Economy.
Underground Construction Economy 2016 Research Report Summary
The William J. Hughes Center for Public Policy at Stockton University was contracted to study the underground commercial construction economy in the state of New Jersey for the Bricklayers and Allied Craftworkers Labor Management Committee of New Jersey, the Carpenter Contractor Trust, Associated Construction Contractors of New Jersey and Masonry Contractors of New Jersey.
The research took a detailed look into the “underground construction economy in New Jersey”. The term “underground economy” refers to unreported income, off-the-books work and unpaid taxes from employment or business activity. It is an umbrella term for business behaviors that evade mandatory taxes and employment laws and regulations. Labor unions and union contractors have sounded the alarm that they face unfair competition from these underground construction activities that illegally undercuts qualified, responsible construction companies that follow the rules.
Unscrupulous, greedy developers and contractors are “stealing” and profiting millions and millions of dollars while exploiting, abusing and cheating workers out of a fair, living wage and the State of New Jersey in state income taxes and unemployment taxes.