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.

Here's a look at two legal developments in California that might show up in your backyard soon. First, according to our friends over at Construction Dive, The California State...
September 21, 2017
The Burlington County Prosecutor’s Office in Mount Holly, New Jersey has arrested three men and charged them with Financial Facilitation of Criminal Activity (First Degree), which...
September 05, 2017
The North Carolina Industrial Commission’s Compliance and Fraud Investigative Division is continuing to proactively identify businesses that do not comply with the Workers’...
July 27, 2017
Lawmakers in North Carolina are taking very seriously something that's been described as a “cancer eating at the heart" of the construction industry: The misclassification of...
July 06, 2017
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