http://www.nj.com/news/index.ssf/200...s_builder.html

Carpenters' union sues builder for hiring illegals
by Dunstan McNichol/The Star-Ledger
Thursday March 20, 2008, 12:22 PM

One of New Jersey's most prolific home builders, D.R. Horton, routinely hires undocumented immigrants and pays them off the books, costing the workers and state taxpayers millions of dollars, a carpenter's union alleges in a lawsuit announced today.

"I call upon our justice system to send a clear message to D.R. Horton," Frank Spencer, Eastern District vice president of the United Brotherhood of Carpenters, said at a news conference announcing the lawsuit in Trenton this morning. "Enough is enough. It's time to pay the bill."

In their suit, filed by former state Labor Commission Al Kroll, the carpenters' union claims Horton fired unionized workers at a Cherry Hill construction site in 2006, then replaced them with a subcontractor who hired dozens of workers off the books.

Repeated at job sites throughout the state, Horton saved millions of dollars by hiring undocumented immigrants who were willing to work for low pay without benefits, the suit says.

In Cherry Hill, for instance, the employees Horton "misclassified" as independent contractors rather than full-time employees were paid between $8 and $14 an hour, far below the prevailing carpenter's wage of $21 to $23 per hour, according to the suit. Horton and its subcontractors also failed to pay state and federal wage taxes for the misclassified workers.

Kroll said the lawsuit against Horton is the first of its kind in New Jersey, but that it addresses a construction industry problem that is growing.

"This hiring scheme is one of the most blatant abuses of law that I've seen in my terms as a labor attorney and Labor Commissioner," said Kroll.

The suit, which carpenters say is authorized by a 2007 state law that attempted to crack down on illegal hiring in the construction industry, seeks damages for the lost wages and benefits, triple damages against Horton for racketeering, and an injunction against Horton from continuing the misclassification.

Horton's spokeswoman in the company's Fort Worth, Texas, headquarters could not be reached for comment.
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