Wage theft is more of a problem in construction than any other industry, and groups are trying to do something about it.
The Department of Labor’s Wage and Hour Division recovered over $32.9 million in back wages for over 17,000 construction employees in fiscal year 2022, the most of any industry measured and over $5 million more than the food services industry, the second-highest sector.
In addition, the National Labor Relations Board is close to making key federal labor law tweaks in 2023, Reuters reported. These could include changes to independent contractor classifications to help protect workers from wage theft and other violations.
Sometimes, workers are wrongly classified as contractors even though they meet the criteria of full-time employees. That is a form of wage theft, as they don’t get the pay and benefits they are owed.
Specifically, the NLRB is considering a 2019 ruling, where the board decided a workers’ opportunity for loss or profit and whether they operate an independent business are the two main factors that determine classification.
The NLRB could revert, Reuters reported, to an Obama-era ruling, which said “entrepreneurial opportunity” was just one factor among many to consider when determining classification. Employers have found that rule confusing and unclear, Reuters reported.
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