A troubling trend of construction firms illegally hiding workers inshell companies to avoid paying state-required workers'compensation coverage began emerging in Florida in the early2000s.
Historically, dishonest contractors lowballed large amounts oftheir payroll, undetected. The goal was to under-report employeesand salaries, and lie that employees worked safer jobs than theyreally did.
Fewer employees, lower payroll and safe jobs reduced workers'compensation premiums. Dishonest construction firms each canillegally shave hundreds of thousands of dollars in premiums ayear. They also can save up to 30 percent or more on contractorlabor costs.
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