This is an interesting twist, on how to fire back at the day-laborer problems. I will have to look into this more!!!

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http://denverpost.com/news/ci_2721682

legislature 2005
Builders group eyes workers' comp veto
By Dave Curtin
Denver Post Staff Writer



Gov. Bill Owens is being lobbied to veto a bill that requires independent contractors in the construction industry to have workers' compensation insurance beginning Sept. 1.

The bill is opposed by the Colorado Association of Home Builders as harmful to small businesses. The association says it will push Owens for a veto.

"We believe it's an anti-competitive piece of legislation and will have the effect of raising home prices," said Steve Dur ham, who represents the homebuilders association. "It's anti- small business. A lot of small- business people are independent contractors."

But supporters hail the bill as a crippling blow to labor brokers - companies criticized for dispatching undocumented-immigrant labor to building sites as independent contractors. The laborers often make below-union wages without overtime and lack on-the-job injury insurance.

Many labor brokers do not pay Social Security or other payroll taxes, citing laws governing independent contractors. The Denver Post detailed the practices of labor brokers in a 2003 series.

The bill, if signed by Owens, would punish violators with daily fines of $500, which would be paid to the state Workers' Compensation Cash Fund.

Supporters include the AFL- CIO, commercial builders and the Workers' Compensation Coalition.

"It's a matter of




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leveling the playing field. Construction companies that are doing the right thing by covering their employees for workers' compensation are being underbid by independent contractors who are not," said John Berry, president of the Workers' Compensation Coalition.
Uninsured workers who get hurt on the job end up in public hospitals at taxpayer expense, Berry said.

"Legitimate contractors who couldn't underbid these labor brokers can now be competitive," said state Rep. John Soper, D-Northglenn, a retired electrician, who sponsored the bill. "I don't see any reason why the governor wouldn't sign it. He says he supports business."

The bill passed the House with bipartisan support and passed the Senate on Thursday with an 18-16 party-line vote.

Staff writer Dave Curtin can be reached at 303-820-1276 or dcurtin@denverpost.com.