‍Introduction

Wage theft has become the hidden cost that’s draining billions from construction workers' pockets every year. Whether it’s underreporting hours, misclassifying employees, or withholding pay, wage theft costs workers billions annually and damages trust within the industry. According to a report from the Economic Policy Institute, wage theft deprives U.S. workers of over $15 billion each year, with the construction industry being one of the hardest hit¹.

For construction companies, wage theft can lead to costly lawsuits, government fines, and long-term reputational damage. Eyrus offers a modern solution to an age-old problem. As a construction workforce visibility platform, Eyrus helps ensure transparency, accurate record-keeping, and fair pay practices across construction projects. In this blog post, we’ll explore how Eyrus helps construction companies avoid wage theft, protect their workers, and reduce legal risks.

1. Understanding Wage Theft in Construction

What is wage theft?

Wage theft occurs when workers are not paid fully for the labor they’ve performed. In the construction industry, this takes many forms:

• Misclassification: Workers are often misclassified as independent contractors instead of employees, which allows companies to avoid paying benefits and overtime.

• Underreporting Hours: Inaccurate records or purposeful manipulation of time sheets can lead to workers being paid fewer hours than they worked.

• Failure to Pay Overtime: Many construction workers, who often work long hours, are denied overtime pay when companies disregard labor laws.

Why is wage theft so common in construction?

The construction industry is unique in that it often involves multiple subcontractors, fluctuating workforces, and disorganized time-tracking systems. These complexities, combined with a lack of transparency and proper oversight, create conditions ripe for wage theft. Many workers are left vulnerable, especially those in low-income roles or those who may not know their rights.

2. Eyrus: A Platform for Transparency and Fair Pay

Introduction to Eyrus

Eyrus provides real-time, objective time tracking and reporting for construction sites. It offers an automated and transparent system that eliminates the need for manual time tracking. By streamlining workforce management and site data, Eyrus ensures that the right people are on-site at the right time—and, importantly, that they’re paid for their time accurately.

How Eyrus Ensures Accurate Work Tracking

If a General Contractor is honestly looking to eliminate wage theft on their projects, they need to be evaluating Eyrus. Here’s how it works:

• Real-time worker attendance tracking: Eyrus tracks worker attendance and movements on-site using advanced technologies such as wearables or mobile applications. This ensures that workers’ hours are automatically and accurately logged, making it impossible for hours to be underreported.

• Digital records and reporting: Eyrus generates automated, digital reports that provide a transparent, indisputable record of who was on-site and when. This eliminates the risk of human error or intentional manipulation of time sheets.

• Subcontractor management: With Eyrus, project managers can keep track of subcontractors and their teams, ensuring accountability across all levels. Eyrus helps to track the presence of subcontracted workers in real time, reducing the risk of disputes over hours worked or who is responsible for paying wages.

3. Protecting Workers and Reducing Risks for Companies

Fair Pay for Workers

Eyrus levels the playing field for workers by ensuring that their hours are tracked accurately and in real time. This technology leaves little room for disputes over hours worked, which is a common source of wage theft in the construction industry. Workers, especially those who might be at higher risk for exploitation, are assured that their time on-site is correctly documented and paid accordingly.

Eyrus' Worker App gives all workers insight into the hours that have been tracked on site:

Avoiding Legal Trouble for Companies

For companies, wage theft is not just an ethical issue—it’s a legal one. Companies caught withholding wages or failing to comply with labor laws can face hefty penalties, lawsuits, and investigations. Eyrus helps companies avoid these pitfalls by ensuring compliance with labor laws regarding timekeeping and wages. By using Eyrus’ automated system, companies can demonstrate that they have transparent and reliable records of worker hours, helping them steer clear of potential legal trouble.

4. Real-World Impact: Eyrus in Action

Case Studies/Examples

Eyrus is already a scaled-up technology solution. Here are two case studies of General Contractors using Eyrus for automated time-tracking:

ZAP Engineering & Construction uses Eyrus to Verify Worker Credentials and Automate Timesheets

On a remote industrial build in West Texas, ZAP employs Eyrus to keep a record of their workforce and automate time tracking.

With 250+ workers on site daily, ZAP was looking for a solution that would:

• Make registering workers easy
• Collect worker contact information and certifications
• Give security guards a way to easily take attendance
• Automate timesheets for billing

Walsh Deploys Eyrus to Automatically Track Varied Construction Wage Rates

The Walsh team uses Eyrus BLE passive workforce time tracking on multiple projects to automatically track hours for prevailing wage reporting. On the El Centro Affordable Housing project in Columbia City Neighborhood of Seattle, they faced an additional challenge:

• Level 2 of the site had its own specific wage rate different than the rest of the site
• Walsh wanted to be able to track one wage rate for the whole site, and a specific wage rate for level

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5. The Future of Fair Labor in Construction

Long-term Benefits for Companies

By adopting Eyrus, companies not only protect their workers but also improve their overall project management. Accurate worker attendance and data reporting lead to better cost control, fewer disputes, and a more efficient use of resources. Moreover, workers who feel confident that they’re being paid fairly are likely to be more productive and satisfied, reducing turnover and boosting site performance.

Eyrus and Industry Standards

Eyrus is helping set a new standard for ethical labor practices in the construction industry. By promoting transparency and accountability, Eyrus is contributing to a future where wage theft becomes a thing of the past. As labor laws become stricter and construction projects more complex, platforms like Eyrus will be key to ensuring that companies remain compliant, and workers are treated fairly.

Conclusion

Wage theft has plagued the construction industry for far too long, but with solutions like Eyrus, there’s a clear path forward. By leveraging real-time tracking, digital records, and transparent reporting, Eyrus not only helps companies avoid wage theft but also promotes fairness and compliance across the industry.

If you’re looking to ensure fair labor practices and avoid the risks associated with wage theft, explore how Eyrus can integrate seamlessly into your construction projects. It’s time to protect your workforce and build a better, more transparent future for construction.

References

1. Economic Policy Institute, Wage Theft by Employers is Costing U.S. Workers Billions a Year (2021), EPI - Wage Theft Report

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