Legislation Seeks To Fight Payroll Fraud

Legislation to fight payroll fraud wage theft may have the best chance in a decade of passing as Governor Whitmer and Attorney General Nessel both support it.  The AFL-CIO – citing an Economic Policy Institute study – says payroll fraud costs Michigan workers $492 million a year. Lisa Canada is legislative and political director for the Michigan Regional Council of Carpenters and Millwrights. She says building trades workers – many of whom are Republicans – are heavily impacted by payroll fraud and wage theft.

“We work with a lot of Republicans in our industry. Many of our members vote Republican. And most of the Republicans that I know completely understand that it’s not fair to cheat your workers. And they would never support that.”

Attorney General Dana Nessel has set up a payroll fraud unit to prosecute these wage theft crimes against Michigan workers. Canada says construction trade unions are hopeful that legislation to strengthen the fight against payroll fraud will actually pass this time around.

“I think that it’s hard to deny no matter which side of the aisle you’re on that what’s right is right.”

Canada says payroll fraud in Michigan takes many forms and the companies that commit wage theft through payroll fraud do it to get out of providing payroll taxes that help form the social safety net for workers in Michigan.