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 agreement between the United States Department of Labor (DOL) and North Carolina’s Industrial Commission was signed last week in an effort to coordinate resources to crack down...
September 08, 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
Hermen Valdez realized that he wasn’t going to be able to afford to get back to Texas. His oldest son, a Houston native, was set to graduate from Baylor, and Valdez needed a plane...
July 14, 2016
The Department of Labor has issued their enforcement rules for joint employment status of contract employees as part of their enhanced Fair Labor Standards Act (FSLA) enforcement...
July 11, 2016
The issue of worker misclassification promises to loom large once again during the next session of the Texas Legislature – and not just as it relates to the construction industry....
June 14, 2016
Business leaders in Houston seem well-positioned to set the tone for how the rest of the nation addresses workforce challenges, experts agree. During a town hall-style event...
June 09, 2016
The recent announcement by the IRS Commissioner that the agency is moving forward with hiring hundreds of additional agents has sparked a debate about exactly how those new...
May 25, 2016
The following article was written by Don Cerlanek, General Manager of MEMCO (Marek Employment Management Company) Atlanta:Representatives of the City of Atlanta Workforce...
May 19, 2016
Last week, the Construction Citizen team updated you on the fact that lawsuits about worker misclassification have been ramping up all across the country. The battle is playing...
April 20, 2016