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.

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
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