Nation & World

Special project: Contract to Cheat

Southern Mechanical, a Nashville, Tenn. based heating and air conditioning firm, installed dozens of units at this private apartment complex near Brier Creek in Raleigh. Southern Mechanical is one of hundreds of companies who improperly treat workers as independent contractors.
Southern Mechanical, a Nashville, Tenn. based heating and air conditioning firm, installed dozens of units at this private apartment complex near Brier Creek in Raleigh. Southern Mechanical is one of hundreds of companies who improperly treat workers as independent contractors. News & Observer

Across the country, roughly 10 million construction workers spend each day in a dangerous and fickle industry. They hang drywall, lay carpet, shingle roofs. Yet in the eyes of their bosses, they aren't employees due the benefits the government requires.

Employers treat many of these laborers as independent contractors. It's a tactic that costs taxpayers billions of dollars each year. Yet when it comes to public projects, government regulators have done nearly nothing about it, even when the proof is easy to get.

The workers don't have protections. The companies don't withhold taxes. The regulators don't seem to care.

McClatchy reporters in eight newsrooms spanning seven states spent a year unraveling the scheme, using little-noticed payroll records that show how widespread the practice has become and what it costs us all.

Find the project here.

This story was originally published September 2, 2014 at 11:03 AM with the headline "Special project: Contract to Cheat ."

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