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.

Across the country, there are more and more examples of businesses facing legal consequences because they were misclassifying workers as independent subcontractors when, by law,...
April 13, 2016
The battle to rein in the scourge of worker misclassification in the construction industry continues to play out at the national level and in state legislatures. As Construction...
February 16, 2016
Six men have been arrested and charged with racketeering and fraud charges after allegedly paying employees of a Florida construction company through shell companies in an attempt...
February 01, 2016
Regulators are getting serious in North Carolina about dealing with companies that shirk their responsibility to carry workers’ compensation coverage on those who toil on their...
January 21, 2016
The owner of a commercial subcontracting company which specializes in metal studs, drywall, and acoustical ceilings was arraigned last month on workplace misclassification...
November 19, 2015
The U.S. Department of Labor (U.S. DOL) and the Vermont Department of Labor signed an agreement this summer to protect employees and law-abiding businesses by reducing the...
October 08, 2015
The National Football League faces a growing backlash over the way cheerleaders are compensated and the reason for it will sound very familiar to regular readers of Construction...
September 23, 2015
The construction industry has fought the issue of independent contractors with no benefits or employees with full benefits for the last decade. Now the startup Uber is in the...
September 21, 2015
Last May, the US Department of Labor signed a three-year agreement with the Rhode Island Department of Labor and Training (DLT) to battle worker misclassification by establishing...
September 11, 2015