Anecdotally, several construction businesses reported this week that their Hispanic contractors were not showing up to the jobsite.
There have also been reports of Home Depot parking lots being eerily empty in the mornings.
What seems clear is that the new administration is making a concerted effort to crack down on illegal immigration, and many workers are staying home to avoid being swept up in raids.
The worry is not unwarranted. This Sunday, the U.S. Immigration and Customs Enforcement (ICE) made nearly 1,200 arrests – 200 more than the 1,000 arrested on Saturday, according to The Wall Street Journal.
This could potentially pose an issue for your business, depending on your operations. Some estimates have put the Hispanic workforce in painting as high at 60%, and many of them have potential exposure to ICE.
That varies wildly by geography. If your paint contracting business is located in the south east or west, you are much more likely to be affected by the market dynamics created by the change in immigration policy. Many painting contractors in less diverse areas may not see a difference at all.
But if you are employing workers illegally, finding new ones could be the least of your problems. Businesses are also subject to penalties if caught employing illegal workers, as a press release from ICE made clear this week.
The January 27 press release touted ICE’s role in catching a North Texas construction company called Speed Fab Crete. Also indicted was a staffing agency, which pleaded guilty to conspiracy to unlawfully harbor illegal aliens.
“The defendants admitted that they attempted to disguise the employment of unauthorized workers at Speed Fab Crete by placing them on the payroll of Take Charge Staffing, then lied to the government, stating that the unauthorized workers had been terminated from employment at Speed Fab Crete,” according to the press release.
Two of the men who pleaded guilty to federal charges face up to five years in prison. Three more face up to six months in federal prison. Each person will also be required to pay a $69,000 fine, equal to “$3,000 per alien, which is the statutory minimum.”
“Now they are paying the price for their criminal conduct,” said Ryan Spradlin, special agent in charge of Homeland Security Investigations in Dallas. “It’s criminal investigations like these that not only exemplify HSI’s mission to protect the integrity of the U.S. immigration system, but also serve as a warning to business owners willing to hire an illegitimate workforce. You can not only expect a hefty fine but a prison sentence as well.”
As a painting contractor, you need to evaluate how this new enforcement policy affects your business, and take steps to mediate. You have a few months until summer season to adjust operations.
The workforce you may have counted on in years past may not be available. Prepare accordingly.
2 Responses
I’m a Maga supporter, I do feel like my party is out of touch with the reality of the work force demand.
The fact is wages are at the top of the scale for non union illegal workers due to a work force shortage.. I have been in business for the past 46 years. I have seen the evolution of the change of the work force. I’m not allowed to ask if an applicant is legal or illegal. The fact is for the past 30 years the work force in California has been glutted with illegal workers. On top of this , the labor laws has the legal system defending them for wrongful termination. I’m suffering a class action from 2 employees whom i suspect are be illegal .
Bottom like I need them to stay in business, There is not a line of legal workers in line waiting to fill the gap no matter the wage that will work across the board.
I’m a Democrat , we have our problems too . I’ve been a union painter & contractor for over 44 years . Certainly the labor force has issues of labor demand & they should make available work visas for anyone wanting to work but us not a citizen . As far as your comment about non union workers making close to union scale . I find that hard to believe . In the state of Indiana ( Northern Indiana . The journeyman’s pay scale is $31 / hr PLUS $9 / hr. towards health + $9/hr for pension + $1/hr. Annuity . These figures are what employers pay to employees for every hour they work . I find it hard to believe a non union workers pay Ievel in Calif. where a union journeymans pay scale is even higher can come close . Maybe the actual pay / hr .. but nowhere near the total benefit package of a union workers pay . That being said the other problem you face of hiring an undocumented employee I agree with . That should never happen however if you were a union contractor & wanted to hire someone that prospective employee must show you proper identification & a SS # to be employed . No undocumented worker has a SS # . Perhaps you should consider being a union contractor . Good luck