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.
Research Report Summary: The Underground Construction Economy in New Jersey