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.

An unfortunate reality of the industry we cover is that there are many instances of worker abuse. We have documented much of this on Construction Citizen over the years. ...
Now that the state is moving forward with a targeted crackdown on the practice of worker misclassification, which some in the construction industry have called “a cancer,”...
Our readers know all too well that the problem of payroll fraud, or worker misclassification, has become a cancer for the construction industry and that quite a few states have...
One contractor in Arizona has had enough of what he and others say is “stealing middle class jobs” in his state.  John Jackson has become one of the most aggressive worker...
To some in construction, avoiding payroll taxes by paying workers as independent subcontractors is just the way to do business.  But, as we've repeatedly noted, it is illegal...
Efforts to crack down on worker misclassification in Texas took a step forward this year with the passage of a targeted crackdown on the practice that some have gone so far as to...
Worker safety is simply a priority for us at Construction Citizen just like it should be for any company doing construction around the world.  Apparent safety violations were...
As a longtime supporter of comprehensive immigration reform, I am more optimistic than ever about a real solution coming out of Washington.  The partisanship and ideology...
Real independent contractors are easy to identify.  They are hired to perform a specific project, they bring their own tools, they have their own business cards, and they...