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.

Heading into the new year, the federal government is ramping up efforts to educate employees and employers about the harms caused by worker misclassification. It’s a problem we’ve...
December 28, 2016
The following article is a guest piece by Jose Garza, Executive Director of Workers Defense Project:Today, the middle class is out of reach for too many men and women working in...
December 15, 2016
During a nationally televised report on Fox News Channel, a prominent Texas construction executive said President-elect Donald Trump has a chance to be both tough and smart on...
December 09, 2016
A 98-page report produced by Stockton University’s William J. Hughes Center for Public Policy last June presents a detailed look into the “underground construction industry” in...
December 05, 2016
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
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