Robert Wood, the Tax Lawyer, in a blog on www.Forbes.com pointed out the movement across the country to criminalize the misuse of independent contractors, and includes several links to see more about the issue. As we have pointed out in previous blogs, the Wage Theft and Misclassification laws passed or pending in several states are fast becoming the norm in the country. In talking about Pennsylvania’s new Construction Workplace Misclassification Act, Wood states:
“Pennsylvania’s rifle shot law is aimed like a laser at the construction industry, which isn’t exactly in a rosy financial position anywhere. Yet it’s also clear that the construction industry has long been a kind of breeding ground for worker classification abuses that often swarm like mosquitoes.”
This is certainly an issue to watch if you are a contractor in the industry who is accustomed to hiring hourly workers on a cash only basis or if you have reclassified your employees as independent contractors to avoid paying overtime, workman’s comp or taxes for those workers.