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.

A recent posting in Ezra Klein’s column in the Washington Post asked the question about the validity of forcing companies to use the E-Verify system.  The author, Suzy Khimm...
August 30, 2010
There are two or three areas that the new wage theft laws and their amendments address that will be welcome news to those who have been victims of wage theft or misclassification....
August 25, 2010
According to Employment Law Watch, “The Illinois Wage Theft Enforcement Act, S.B. 3568 (the "Act"), signed into law July 30, 2010, increases both civil and criminal penalties for...
August 14, 2010
Construction Citizen has been following this issue for the last few months and most of our efforts have been to track the progress of the laws being introduced in the various...
August 09, 2010
Construction Citizen received a video from a fan yesterday.  It shows some guys in hard hats walking onto a Whiting -Turner Construction site in Abington, Pa. and asking the...
August 06, 2010
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