A Sustainable Workforce Starts With You

Payroll Fraud

Payroll fraud (also called worker misclassification and workplace fraud) is the illegal practice of designating an employee as a "1099 worker" or an independent contractor. Unscrupulous employers do this to avoid paying payroll taxes, unemployment tax, or workers’ compensation insurance and are therefore able to submit lower bids for projects, undercutting responsible contractors. Several states have already passed laws to penalize those who cheat workers and taxing agencies in this way, and two bills are currently being considered which would provide federal legislation to end this practice and that of wage theft. They are The Fair Playing Field Act, introduced by Senator Kerry and a number of co-sponsors and The Employee Misclassification Prevention Act.

Sheral Keller, the director of the Office of Workers’ Compensation Administration at the Louisiana Workforce Commission (OWCA), has written an article in which she explains how...
February 20, 2017
A recent post by Joe Paduda, principal of Health Strategies Associates, in his blog, Managed Care Matters, titled “Construction Labor Fraud is Screwing Everyone” was the second in...
January 17, 2017
As the debate about illegal immigration rages at the national level thanks to the vitriolic rhetoric of Republican presidential nominee Donald Trump, it's high time for all of us...
September 27, 2016
With each passing day, state and federal governments are getting more serious about rooting out and eliminating worker misclassification, sometimes known as payroll fraud. But...
August 02, 2016
A construction executive in New York is charged with underreporting his payroll so that he could reap $2 million in insurance premium breaks.Prosecutors in Manhattan said Michael...
March 16, 2016
Six men have been arrested and charged with racketeering and fraud charges after allegedly paying employees of a Florida construction company through shell companies in an attempt...
February 01, 2016
The owner of a commercial subcontracting company which specializes in metal studs, drywall, and acoustical ceilings was arraigned last month on workplace misclassification...
November 19, 2015
Last May, the US Department of Labor signed a three-year agreement with the Rhode Island Department of Labor and Training (DLT) to battle worker misclassification by establishing...
September 11, 2015
More than two dozen states have now agreed to cooperate closely with the federal government to crack down on what’s known as “worker misclassification.”Sometimes known as payroll...
August 19, 2015