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The basics:

• Opinion calls for crackdown on illegal construction labor in the state
• Writer is the director of the Bricklayers and Allied Craftworkers Union of NJ
• Says off-the-books work linked to wage theft and unsafe job sites
• Urges Gov. Sherrill to strengthen enforcement and penalties

As Gov. Mikie Sherrill begins her first term, New Jersey has a critical opportunity to confront a problem that has quietly grown beneath the surface of our economy: the underground construction labor market that exploits workers, undercuts responsible employers, and puts lives at risk.

For more than a century, the Bricklayers and Allied Craftworkers Union of New Jersey has represented the skilled men and women who build our communities; our schools, hospitals, infrastructure, and housing. We are proud of our long history of providing pathways to the middle class through fair pay and safe job sites. Today, that tradition is being undermined by widespread off-the-books labor practices that reward bad actors and punish those who follow the law.

National estimates show that as many as 2.1 million construction workers are paid off the books, and New Jersey is no exception. Unscrupulous contractors routinely misclassify workers, evade payroll taxes, skirt safety regulations, and exploit undocumented labor. They win bids not because they are more efficient or skilled, but because they cheat.

This is not a victimless crime. It drives down wages for law-abiding workers, deprives the state of tax revenue, and creates extremely dangerous job sites. A 2021 report found that union construction job sites are significantly safer than non-union sites. Yet in 2023, about 1 in 5 workplace deaths occurred in the construction industry, which also accounted for about 47.8 % of all fatal falls, slips, and trips. These deaths overwhelmingly occur on non-union, poorly regulated sites where safety rules are optional, and workers are afraid to speak up.

While Gov. Phil Murphy’s administration did take some steps to address wage theft and misclassification through stop-work orders, enforcement alone has not been enough to dismantle an underground economy that is highly profitable for those willing to break the law.

This must change.

Call for action

Gov. Sherrill has made affordability, fairness, and accountability top priorities of her agenda, and tackling illegal labor practices in construction directly advances all three. When contractors cheat workers and taxpayers, everyone pays the price, whether through lost revenue, unsafe job sites, suppressed wages, or higher project costs driven by corner-cutting and costly rework.

Strong labor enforcement must be paired with real consequences. Longer work stoppages, increased site inspections, and actually meaningful criminal penalties for repeat violators would send a clear message that New Jersey will no longer tolerate exploitation as a business model.

The cost of inaction is already clear. Over the last 20 years, BACNJ has lost over 3,000 members as underground labor has weakened legitimate career paths in the trades. Skilled bricklayers and craftworkers who did everything right by training hard, following the rules, and paying their taxes now face fewer opportunities because lawbreakers are allowed to operate with nothing more than a slap on the wrist.

Longer work stoppages, increased site inspections, and actually meaningful criminal penalties for repeat violators would send a clear message that New Jersey will no longer tolerate exploitation as a business model.

‘A damaging cycle’

The underground economy is also directly undermining our ability to train and retain the next generation of skilled workers. Union apprenticeship programs depend on work opportunities where apprentices can learn on the job while earning fair wages and benefits. However, when responsible contractors lose bids to companies paying workers off the books, that work disappears. Apprentices are left without the hours they need to advance in their careers, often driving them to leave the craft altogether.

The result is a damaging cycle in which a responsible employer cannot keep apprentices working, unions struggle to retain new members, and New Jersey loses the skilled workforce pipeline it depends on to build our infrastructure safely.

BACNJ stands ready to work with Gov. Sherrill to make New Jersey a national leader not only in infrastructure development, but also in fairness and accountability in construction. A level playing field rewards skill, protects all workers, and ensures law-abiding employers who follow the law are not undercut by those who do not.

The underground construction economy has operated in the shadows for too long. New Jersey can bring it into the light and build a safer future for all workers. Lives, livelihoods, and the integrity of our economy depend on it.

John Capo is director of the Bricklayers and Allied Craftworkers Union of New Jersey.