How do you like what Iowa is doing, Iowa cracks down on businesses that hide illegal workers?

by **wilbart** » Sat Oct 29, 2011 9:15 am

LINCOLN — Iowa is being more aggressive than Nebraska in cracking down on unscrupulous businesses that hide illegal immigrant workers by misclassifying employees as “independent contractors.”

Iowa also is doing a better job of collecting taxes that companies have avoided through the misclassification.

Nebraska has a new law to crack down on such employers, but enforcement has been less successful by comparison.

In Iowa, a special investigative unit has collected $2.1 million in unpaid taxes, penalties and interest in its first 18 months and has identified nearly five times more misclassified workers than Nebraska.

Some Nebraska businesses say the state could collect between $9 million and $18 million in unpaid taxes a year if it followed Iowa’s lead.

“They’ve just scratched the surface” in Nebraska, said Jim Steele, a safety director with a La Vista drywall company. “They need to press on the accelerator.”

Misclassification is most prevalent in the construction trades, such as drywall, framing and masonry workers, as well as among cleaning crews and truck drivers.

Firms can slice up to 30 percent of their labor costs by misclassifying workers as independent contractors. They can undercut other companies when bidding for jobs because they aren’t required to withhold and pay workers’ compensation insurance, unemployment insurance, income taxes and Social Security on such employees.

The World-Herald revealed in 2003 how employers misclassified undocumented immigrants who helped build Omaha’s Qwest Center.

Two years ago, Tufly Drywall Inc. was fined $150,000 in U.S. District Court for employing undocumented immigrant workers during construction of the Zorinsky Federal Building in downtown Omaha. The workers had been misclassified to escape background checks.

The recent recession put a bigger spotlight on the issue as construction work became harder to find, increasing pressure to cut labor costs in tough bidding wars.

The issue inspired former Iowa Gov. Chet Culver to order a task force study in 2008. That led to the creation of a special enforcement unit, with six investigators, a supervisor and an attorney. The unit has found 2,602 misclassified workers and $61 million in unreported wages since September 2009.

Even with Iowa’s tight budget, there’s no talk of cutting the $750,000-a-year effort.

http://www.southwestiowanews.com/articles/2011/01/30/council_bluffs/doc4d44d68f90c62293959165.txt

by **nickson** » Sat Oct 29, 2011 9:18 am

I live in Iowa and there have been many raids across the state by I.C.E. rounding up illegal workers in agriculture and meat packing plants.One company was heavily fined for having radio ads on Mexican stations recruiting illegal workers to come here.Also new is they are going to do back ground checks when you renew your drivers license that should nab many more.I say game over for illegals here soon.Power to the people!

by **chadburne48** » Sat Oct 29, 2011 9:19 am

i like it, but i hope branstadt doesn't get rid of it. he sure wants to do some major state job slashing. i hope this is not one of them. im not saying he will but we will have to wait and see.

by ji » Sat Oct 29, 2011 9:21 am

IM FROM CALIFORNIA!!!

by **egan** » Sat Oct 29, 2011 9:34 am

I am for any state that cracks down on illegals. Wish mine would stop pandering to them.

by **mads** » Sat Oct 29, 2011 9:38 am

Get 'em!!!!

by **albanwr26** » Sat Oct 29, 2011 9:48 am

those mormons are doin it good

by **warton26** » Sat Oct 29, 2011 9:49 am

Now if we can just get more states aware of how the U.S. citizens are being throw under the bus for a cheap illegal work force. At least we're starting to gain some ground.

by **koltin** » Sat Oct 29, 2011 9:53 am

We need laws like this in all 50 States,and enforcement to match.As well as mandating that all employers verify legal eligibility to work before they even hire them,such as mandating use of E-Verify or a similar system.

The tools are right here in our hands,we just need to use them.The number of jobs we could open up to citizens or legal residents in the construction industry alone is huge.When I built my house I demanded that my builder use nothing but workers who would clear through E-Verify,which at the time he didn't use.He used it and made contractors on the job do the same,and they had to shuffle workers around to be able to meet my demand,but they wanted the work.If we mandated it for all employers,half the immigration problem would solve itself.

August

by **dickens93** » Sat Oct 29, 2011 10:04 am

"Firms can slice up to 30 percent of their labor costs by misclassifying workers as independent contractors. They can undercut other companies when bidding for jobs because they aren’t required to withhold and pay workers’ compensation insurance, unemployment insurance, income taxes and Social Security on such employees."

Just doin' the jobs employers don't want to pay Americans legally to do.

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