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.

More than two dozen states have now agreed to cooperate closely with the federal government to crack down on what’s known as “worker misclassification.”Sometimes known as payroll...
August 19, 2015
Two men in Georgia have been arrested on federal charges that they intentionally misrepresented the employment classification of construction workers on a project for the Centers...
August 13, 2015
“Jill Wells, an official of Engineers Against Poverty, an advocacy group in Britain, described the guidelines issued by CH2M as commendable. But, she said, the company’s actions...
July 22, 2015
The administrator of the Department of Labor’s wage and hour division, Dr. David Weil, this week issued an administrative guidance document aimed to curb the misclassification of...
July 17, 2015
The following article was originally published in the July edition of AWCI's Construction Dimensions magazine. Don Procter writes about Marek's Dallas Division President and AWCI...
July 16, 2015
Federal agencies with oversight over various industries are taking the problem of worker misclassification more seriously and are taking steps to rein in as many bad actors as...
June 30, 2015
Last week, the News & Observer, a regional newspaper serving the Triangle region of North Carolina, published an op-ed by Doug Burton, owner of Whitman Masonry in Raleigh....
June 12, 2015
The news team at WFAA Television in Dallas/Fort Worth has done an oustanding job of highlighting the problem of worker misclassification. In their latest installment, reporter...
May 18, 2015
Editor's note: The following article was authored by L.M. Sixel and was originally published in the Houston Chronicle.  Reprinted with permission.Employees and...
May 12, 2015