Answer: A "coyote labor broker" is a human trafficker. In the residential construction world they organize "crews" of individuals to build most new US homes (paint, frame, roof,etc). They often work in crews of 10 to 20 men. Typically the crews have a crew chief who keeps track of hours, and gets a check (typically weekly) from the "residential construction labor coyote". The check is then cashed and the cash is distributed to the undocumented workers. In most cases, no taxes ever get paid. Over 50%+ of all new residential construction in the US has been built by undocumented workers.

Where do the workers come from?

Answer: Typically the workers come from Mexico.

Who Organizes The Labor Crews?

Answer: The labor coyote puts out the word in Mexico, or the labor coyote recruits existing undocumented workers or crews, already here in the US. This often involves Mexican organized crime. If an undocumented worker from Mexico or Central America complains about working conditions, or threatens to tell about the "coyote's" schemes to get him/her into the US, he or his family, could be put at risk.

How Do The Home Builders Get Away With It?

Answer: The homebuilder tax fraud scheme is simple. The National or Regional Homebuilders hire legitimate regional or local subcontractors. The local sub contractors then use the "labor coyotes" to staff residential job sites. The actual sub contractor gets a check from the homebuilder for work done at the job site. The sub contractor then pays the labor coyote with another check (1099). The labor coyote then pays their workers with typically one check that has a tax classification as a 1099 subcontractor payment. The check gets cashed and the workers receive cash for the work they did. In most instances workers are not paid overtime or allowed federal work place protections as provided by the Federal Labor Standards Act (FLSA). The workers do not complain about the tax fraud, or poor working conditions, out of fear of reprisal.

Do The Homebuilders Know This Is Going On?

Absolutely. There is no way that you could visit almost any residential job site and not know your workers were undocumented workers. There is also no way that homebuilders would not know that their workers or their subcontractors, did not pay any taxes. For members of the press it is recommend they visit any larger residential construction sites in Las Vegas, Arizona, California (Palm Springs), etc. Note: Bring an individual who speaks Spanish, or talk to representatives of the Carpenters or Painters Unions in the Southwest, Texas, Colorado, The West Coast, or Florida.

Does This Tax Fraud Represent The Majority of National Or Regional Homebuilders?

Yes.

Homebuilders are worried about immigration reform

According to Americas Watchdog, "the intent of the "homebuilders" is to perpetuate the largest cases of tax fraud in US history so that they can continue to "1099" illegal workers with their "coyote labor schemes" because they get cheap labor and greater profits". Two days before the most recent failed vote on Immigration Reform, Homebuilders from around the US flooded Washington, DC with check books in hand.

So where do we go from here? Americas Watchdog supports President Bush's efforts to create a legal pathway for undocumented workers to obtain a legal way to work or to obtain citizenship in the United States. Aside from successful passage of the legislation, Americas Watchdog supports the following:

1. Its time for a National Identification Card for all US Citizens and documented workers. The card will have the holders picture and their Social Security number. This card will also either have a fingerprint or retina print that can be easily scanned for positive identification. In a post 9-11 world, this is a must. A National ID card would also be much cheaper than an ineffective wall.

2. It should be a felony to employ any worker unless they have a National ID card. This would ease pressure on the border.

3. Labor Unions should be allowed to openly recruit what are now undocumented or illegal workers, in order to insure these workers are not being mistreated by their employers, as is now the case. There has never been a time in our nations recent history where organized labor was more needed than they are today.

4. Any US Senator that took a campaign "donation" from a Homebuilder or a Homebuilder lobbyist prior to the failed immigration vote should be held accountable for his/her vote.

5. There needs to be a meeting of organized labor, legal experts with experience in labor laws and others who have an interest in human rights and dignity for the individuals who come to the United States, to do the jobs that many Americans will not do. Construction defect experts should also be included in this meeting, as there may be millions of defective homes in the US because a greedy homebuilder cut corners to make more money. This meeting should occur as soon as possible.