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Industry wants undocumented law enforced
NMBusinessWeekly ^

Posted on 07/19/2005 8:40:46 AM PDT by Happy2BMe

Industry wants undocumented law enforced

Sean O'Hara
NMBW Staff

The state and contractors all want to stop unscrupulous construction companies from hiring undocumented workers and then passing them off as independent contractors, for which they claim no responsibility -- and pay no withholding taxes. But the state says it is "shorthanded" and Department of Labor officials won't say if they'll seek funds from legislators next year to enforce a new law meant to deal with the problem. Contractors say they doubt the state has the means to enforce the new law -- and they point to recent cuts in the state Labor Department's Labor & Industrial Division as evidence that the state is not all that serious about enforcing the new law.

At issue is Senate Bill 657, which took effect June 17 and levies penalties of up to six months in jail or a fine of up to $5,000 if contractors fail to meet required employment criteria. The law came, in part, as a response to construction industry leaders who said they discovered a number of contractors around the state using a loophole known as a "1099 status" in the existing law to hire undocumented workers and list them as independent contractors. Industry officials say an independent contractor should only be a person who assumes financial responsibility for errors, possesses commercial advertising or business cards and has the authority to hire and fire employees to perform the labor or services.

About 22 representatives from the state and the construction industry met last week to come up with a way to enforce the new law. They discussed sharing information through a central hub that also would serve as a contact point for informants to turn in law-breakers.

But a number of industry representatives at the meeting raised questions on the legality of sharing information on a contractor, even if that contractor appeared to be breaking the law. Bruce Bachelor, director of the Labor & Industrial Division, said he hopes to hold a second meeting next week to address those concerns.

"There was a general reluctance about sharing information on citizens who are breaking the law, so we are looking for the proper legal vehicle. Once we have that in order, we'll move forward with enforcement," says Bachelor.

Bachelor conceded that concerns about the state being short on staff are well founded.

"We are shorthanded, any rational observer would agree we are," says Bachelor.

He said he's unsure if the department will seek additional funds from the state next year. Doing that, he adds, could increase the state's credibility with contractors.

J.D. File, president of Albuquerque's Les File Drywalling, says he is happy that the state is finally ready to tackle the issue, but questions the state's commitment to enforcement.

"If they enforce this, it will be a great thing, but 90 percent of the legislation they pass they don't enforce," File says. "As far as anything the government gets into, they seem to start off with good intentions, but following through is a different story. I'm very cautious and that's saying it mildly."


TOPICS: Crime/Corruption; Culture/Society; Foreign Affairs; Government; US: Florida; US: New Mexico
KEYWORDS: aliens; federal; federallaw; immigrantlist; immigration; immigrationlaw; law
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America is literally losing billions of dollars each year in lost tax revenue stolen by the Underground Economy in unreported wages to illegal aliens.

It this the right thing to do?

1 posted on 07/19/2005 8:40:49 AM PDT by Happy2BMe
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To: Happy2BMe; BransonRevival; theworkersarefew; KyleM; JSDude1

ping


2 posted on 07/19/2005 8:42:29 AM PDT by Gipper08 (Mike Pence in 2008)
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To: Happy2BMe

oh but FReepers don't care as long as they can buy that lettuce at Walmart for 99 cents a head. LMAO


3 posted on 07/19/2005 8:44:03 AM PDT by kellynla (U.S.M.C. 1st Battalion,5th Marine Regiment, 1st Marine Div. Viet Nam 69&70 Semper Fi)
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To: JohnHuang2; keri; international american; Kay Soze; jpsb; hershey; TomInNJ; dagnabbit; Pro-Bush; ...
Legal loopholes are turning into rope nooses for Underground Economy contractors.

This is just beginning. When the law is enforced across the breadth of the entire country there will be a terrible price to pay in terms of rioting by the millions of illegal aliens put out of work over this.

Stay tuned . .

===============================

At issue is Senate Bill 657, which took effect June 17 and levies penalties of up to six months in jail or a fine of up to $5,000 if contractors fail to meet required employment criteria.

The law came, in part, as a response to construction industry leaders who said they discovered a number of contractors around the state using a loophole known as a "1099 status" in the existing law to hire undocumented workers and list them as independent contractors.


4 posted on 07/19/2005 8:45:59 AM PDT by Happy2BMe (Viva La MIGRA - LONG LIVE THE BORDER PATROL!)
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To: Happy2BMe
"There was a general reluctance about sharing information on citizens who are breaking the law, so we are looking for the proper legal vehicle.

Say what?

5 posted on 07/19/2005 8:52:03 AM PDT by varon (Allegiance to the constitution, always. Allegiance to a political party, never.)
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To: Happy2BMe
America is literally losing billions of dollars each year in lost tax revenue stolen by the Underground Economy in unreported wages to illegal aliens.

Darn straight. Sic the INS on these rat bastard employers who ruin every industry by undercutting prices and bids due to their illegal alien workforce. Which is often hired by their subcontractors. That's how the game is played. And these effin' subcontractors are usually legal immigrants themselves who hire their own (illegal alien) kind

6 posted on 07/19/2005 8:53:04 AM PDT by dennisw (See the primitive wallflower freeze, When the jelly-faced women all sneeze)
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To: dennisw
The IRS is a co-conspirator. So is the INS.

Both are merely following directives.

* * *

Illegal-hiring penalties fall

* * * *

The Law Against Hiring or Harboring Illegal Aliens - An Overview of Federal Law.


7 posted on 07/19/2005 8:58:19 AM PDT by Happy2BMe (Viva La MIGRA - LONG LIVE THE BORDER PATROL!)
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To: kellynla

This FReeper supports American workers and LEGAL migrant workers.


8 posted on 07/19/2005 9:01:25 AM PDT by cripplecreek (If you must obey your party, may your chains rest lightly upon your shoulders.)
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To: Happy2BMe
Hmm....I was just reading this article, to the contrary, placing many in business as aiding and abetting:

JULY 18, 2005
EMBRACING ILLEGALS
COMPANIES ARE GETTING HOOKED ON THE BUYING POWER OF 11 MILLION UNDOCUMENTED IMMIGRANTS
9 posted on 07/19/2005 9:05:21 AM PDT by BIRDS
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To: BIRDS
Illegal aliens getting home loans - FDIC and IRS encourage loans irregardless of legal status.


10 posted on 07/19/2005 9:16:06 AM PDT by Happy2BMe (Viva La MIGRA - LONG LIVE THE BORDER PATROL!)
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To: 1_Inch_Group; 2sheep; 2Trievers; 3AngelaD; 4.1O dana super trac pak; 4Freedom; 4ourprogeny; ...

ping


11 posted on 07/19/2005 9:17:13 AM PDT by gubamyster
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To: Happy2BMe
Yes, we are losing tax revenue but more important, these "exploited" workers are not paying into Worker's Comp, not carrying the necessary insurance, etc., but we'll all pay the freight when they are injured. If we want to get serious about combating illegal immigration, we have to work on the demand side too.
12 posted on 07/19/2005 9:22:35 AM PDT by NonValueAdded ("Iraq is the bug light for terrorists" (Mike McConnell 7/2/05))
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To: Happy2BMe

I could personally care less about "losses" to government of tax revenues. It's all stolen money anyway, not a "loss." I am, however, highly unhappy about the illegals being in my country. I hope that the construction industry is a bellweather of change in companies demanding enforcement of immigration laws.


13 posted on 07/19/2005 9:26:29 AM PDT by dcwusmc ("The most dangerous man, to any government, is the man who is able to think things out for himself.)
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To: Happy2BMe
The law came, in part, as a response to construction industry leaders who said they discovered a number of contractors around the state using a loophole known as a "1099 status" in the existing law to hire undocumented workers and list them as independent contractors.

folks, that pays about $25.00 - $35.00 per hour base.. hell of alot more than picking cabbage

14 posted on 07/19/2005 9:30:37 AM PDT by sure_fine (*not one to over kill the thought process*)
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To: Happy2BMe
Who was it who said that slavery would have eventually disappeared and that the Civil War wasn't necessary?

The desire for cheap or free labor still exists and will probably always exist -- example: illegals. Especially in the agricultural industry where most of the labor is manual.

If companies are willing to hire illegals. What if their labor pool were free (or close to it), i.e., slaves?

Anyway, we have to make the decision: do we want to use this available resource legally? Of course, once it is legal then it won't be cheap anymore. Laborers will form unions, demand minimum wage, pay taxes. A huge can of worms that in the end the cheap labor force may disappear.
15 posted on 07/19/2005 9:31:38 AM PDT by dhs12345
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To: dcwusmc; Travis McGee; skeeter; gubamyster; FBD; BIRDS; GVgirl

By not properly enforcing the new law, notes File, the state is losing out on unpaid taxes because "cheating" contractors fail to pay workers' compensation, health insurance and benefit costs.

For example, File says while New Mexico's unionized contractors have to pay a standard wage of $17.32 per hour plus another $4 in benefits, so-called cheating competitors can get the work done for $10 an hour because they hire cheaper labor without paying the appropriate taxes.

Ben Martinez, department manager at Harrison Contracting Co. is happy the state is doing something, but he's taking a wait-and-see approach.

"This is a pretty unfair practice in my opinion and if they enforce this, I'm glad, because I'd rather have it than not -- but enforcement is a different story," says Martinez.

John Horton, director of public policy and government relations for the Associated General Contractors New Mexico Building Branch, says future meetings could salvage what otherwise could collect dust as a law. However, Horton questions where further funding will come from.

"Over the last year, the Department of Labor's budget [has been] like a jar of liquid with the top left off and it has slowly evaporated. The bill says nothing about this," says Horton. "If we can demonstrate a real severe problem then we can seek more funding."

Mike Shea, political director for the Mountain West Regional Council of Carpenters, said he believes the new law will be enforced and points to last week's meeting of industry leaders and future scheduled meetings as evidence something is being done. Shea says the meetings will help prepare those in the industry for when they come across unscrupulous contractors.

"A lot of the time a bill passes and it's not worth the paper its written on, but we wanted to make sure this didn't happen," says Shea.

Shea says more funding is important and officials have discussed seeking additional money to help the state agency enforce the new law."I can't speak for the other agencies, but the Department of Labor is working with a skeleton crew right now. They had about 25 percent of their budget taken away and that's a lot of guys putting in a lot of extra drive time," says Shea.

The MWRCC pushed for the legislation last year when it discovered that a number of contractors in the state were hiring undocumented workers and not paying their fair share of taxes.


16 posted on 07/19/2005 9:32:51 AM PDT by Happy2BMe (Viva La MIGRA - LONG LIVE THE BORDER PATROL!)
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To: dcwusmc
I could personally care less about "losses" to government of tax revenues.

If I thought the gubmint was simply saying 'oh well, thats that' I'd agree. But if they can't get their $$ from those who can get away with not paying they'll get it from those they hold by the nose - and guess who that is.

17 posted on 07/19/2005 9:39:13 AM PDT by skeeter ("What's to talk about? It's illegal." S Bono)
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To: Happy2BMe
We are over run by greedy Quislings in positions of responsibility.

Quisling: a synonym for traitor, someone who collaborates with the invaders of his country.

18 posted on 07/19/2005 9:40:59 AM PDT by Travis McGee (--- www.EnemiesForeignAndDomestic.com ---)
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To: Happy2BMe
The Underground Economy is MUCH bigger than just illegal aliens. If ever brought to light, there would be a true revolution by honest taxpayers.
19 posted on 07/19/2005 10:02:17 AM PDT by Roccus (The collective has started.)
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To: Happy2BMe
But the state says it is "shorthanded"...

I'll bet if one of those businesses failed to pay its taxes, the state wouldn't have any problem finding enough staff to deal with the problem immediately. ;)

20 posted on 07/19/2005 10:04:03 AM PDT by Mr. Jeeves ("Some people are like gravy, spilled on God's Sunday shirt..." -- Spock's Beard)
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