A Sustainable Workforce Starts With You

Worker Misclassification

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.

"With some audits suggesting that misclassification deprives New Jersey of over $500 million in tax revenue every year," the governor of that state is directing a task force to...
Ongoing efforts to root out the problem of worker misclassification in Wisconsin have resulted in the recovery of more than $1.4 million in unpaid taxes, interest, and penalties,...
Read an interesting compilation of the highest dollar amounts recovered from workers’ compensation fraud cases in the U.S. during 2017 - $697.4 Million of employer fraud from...
The past year was a tough one when it comes to the issue of worker misclassification. For about a decade, there was some significant progress in state legislatures across the...
A broader and more streamlined crackdown on worker misclassification is coming in Louisiana, where the state’s workforce commission is beefing up efforts to deal with the problem...
Governor Jerry Brown, on Saturday, issued a statement saying that he was signing Assembly bill 1701. According to the signing letter, “This bill would extend the liability...
The Texas Standard, a statewide radio program that airs on NPR stations throughout the state, has been doing an in-depth series on the realities faced by undocumented people who...
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...
Glendale, California, located in Los Angeles County and home of baseball’s Doger Stadium, is also the home of Calcrete Construction, Inc. – a company that has been charged with a...