HARTFORD, Conn. (AP) — Connecticut labor officials announced Wednesday that work has been halted at a half-dozen construction sites over allegations that companies are misclassifying employees as independent contractors to avoid workers' compensation and other payments.
The lawyer for one of the companies said labor inspectors arrived the day after his client hired two workers and before he had time to file the necessary paperwork.
From July 25 to Aug. 5, the state Department of Labor found 19 companies at six construction project sites in Westport misclassifying workers, Labor Commissioner Glenn Marshall said. Fines of $300 are levied for each day a company does not carry workers' compensation coverage as required by law.
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Marshall said that when businesses fail to recognize their workers as company employees, they avoid providing protections such as workers' compensation that offer financial help for injured workers.
"Unfortunately, companies that do play by the rules have no way of competing with those that try to cut costs at the expense of their own employees," he said in a statement.
Revenue also is a factor, said Gary Pechie, director of the Department of Labor's wage and workplace standards division. The state government is struggling to balance a two-year, $40.1 billion state budget that was about $3.3 billion in deficit this year.
"There is revenue out there that should be collected," Pechie said.
The Department of Labor said it inspected 67 construction projects in the past six months and reviewed the records of 299 contractors, issuing 103 stop-work orders. Pechie said the agency acts on complaints from workers and unions and reviews local building permits.
More than $81,000 has been collected in civil penalties.
Companies have 10 days to appeal the decision and work may resume when an employer provides proof of coverage.
Lawrence Costantini, a lawyer for Frank Marini Mason Contractors LLC, which was forced to stop work July 27 on a site in Westport, criticized the state for seeking revenue from small construction businesses that are struggling in a weak economy. His client has resumed work, he said.
"It's a shame that Connecticut is focusing on small businesses to collect revenue," he said. "They're out there making the money."
State labor officials arrived at the site the day after the building contractor hired two new employees, he said. The company hadn't yet processed the paperwork, Costantini said.
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Stephen Singer can be reached at http://twitter.com/Stephen101x
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