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.

With the advent of the Arizona Immigration law, SB 1070, the filing of Amicus Briefs by 27 states, and the challenge to the Arizona law, many of us are not watching the Wage Theft...
August 05, 2010
Matt Capece tracks the issue of worker misclassification and off the books payments for the United Brotherhood of Carpenters and Joiners of America, whose home office is in Derby...
July 26, 2010
In a message posted last February by Mark H. Ayers, president of Building & Construction Trades Department, Mr. Ayers expresses his frustration with the prevalent practice of...
July 25, 2010
Construction company owners listen up.  According to an article in Finance Review, the IRS is undertaking 6,000 additional random audits over the next 3 years in order to...
July 20, 2010
Last year a survey of over 4,000 low-wage workers in New York, Chicago and Los Angeles was released in the report, Broken Laws, Unprotected Workers: Violations of Employment and...
June 29, 2010
"The number of independent contractors in the total employed workforce grew from 6.7 percent in 1995 to 7.4 percent in 2005.  In 2005, there were 10.3 million independent...
June 25, 2010
“Passing legislation that aims to crack down on ‘worker misclassification’ is an issue of fairness,” said Senator Sherrod Brown (D-Ohio) about his Employee Misclassification...
June 22, 2010
There is a bill, LB 563, moving through the Nebraska Legislature that creates penalties for “Employers” who misclassify workers as “Independent Contractors” in order to avoid...
April 14, 2010
The deadline for issuing 1099s to contractors and consultants who worked with you last year was the 31st of January. There was a last minute flurry of people trying to get w-9s...
February 07, 2010