About a dozen immigrant drywallers — some illegal — were never paid for their work last summer at a Reston Town Center project by their employer, Salvador Blanco, an unlicensed labor broker, according to contractors on the job.
Among them was Flor and her husband, Juan Carlos, both illegal immigrants from El Salvador. The couple, who asked to be identified by their first names only because they feared deportation, said when they weren’t paid for a month’s work, their family back home had to sell what little property they had to cover the medical bills for their sickly 4-year-old daughter.
The workers eventually received compensation totaling about $35,000 from C.J. Coakley Co., the subcontractor that hired Blanco, and Hitt Construction, the general contractor, after carpenters union officials alerted the contractors and property owner, Boston Properties, of the problem.
Calls to Blanco were not returned.
The couple could have legally filed a complaint with the federal Department of Labor, but Flor said when she tried, questions about her legal status scared her away.
Flor’s story is just a sample of the underground construction labor market that legislators and union officials say tops $1 billion in the region.
As many as 60 labor brokers like Blanco operate in the area, union officials said. Oftentimes, the brokers improperly classify workers so they can skirt tax and workers’ compensation laws, officials added. When they don’t pay into the system, it’s taxpayers and legitimate business owners who pick up the tab.
“These people are cheating the system and have repealed every benefit we’ve fought hard for — workers’ compensation, Social Security,” said Del. Cheryl Glenn, D-Baltimore, who has introduced legislation in Annapolis, Md., to crack down on the brokers.
There has been no such legislation introduced in Virginia, but the problem is getting a closer look, lawmakers said.
“We need more transparency,” said Del. Mark Sickles, D-Fairfax. “Builders often don’t know what happens after they hire a contractor. There’s so many arm’s-length relationships.”
Labor brokers can cut costs for subcontractors who are always vying for the lowest bid, said George Isner, a union organizer for the Mid-Atlantic Regional Council of Carpenters. As workers’ compensation costs have gone up, many subcontractors have sliced their permanent staffs, turning to labor brokers to fill them out, he said.
Douglas Ayers, president of C.J. Coakley, said he was unaware of Blanco’s hiring practices, and added he rarely uses labor brokers. He said he’s planning to sue Blanco for restitution.
Flor has become wary of working for labor brokers, although oftentimes they’re the only avenue to finding a job, she said.
“We came here to work, and we expect to get paid for it,” she said.
