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 report from a bipartisan panel of Texas lawmakers says companies that pretend their employees are independent subcontractors are undermining free markets and encouraging illegal...
January 23, 2015
There’s almost nothing partisan or ideological about trying to stop companies from cheating taxpayers and their workers, which is exactly what happens when some firms misclassify...
December 15, 2014
Far too often, construction companies cheat taxpayers and their workers by pretending their employees are independent subcontractors when, by law, they should be paid as employees...
December 08, 2014
As is happening in Texas and other states, lawmakers in North Carolina are now finally taking a look at what they should do to crack down on the epidemic levels of worker...
October 28, 2014
The federal government is getting more serious all the time about cracking down on businesses that pretend their employees are subcontractors when, by law, they should be paid as...
October 22, 2014
In a September 2014 study entitled Sinking Underground: The Growing Informal Economy in California Construction, misclassification of more than 39,800 construction workers is a...
October 15, 2014
On Monday, October 6th, the Austin Community College Board of Trustees will consider a resolution addressing wages and working conditions on future construction projects included...
October 04, 2014
There is growing anger across the nation about the about the cancer of worker misclassification in the construction industry.  Why are more and more political leaders,...
September 25, 2014
The work we do at Construction Citizen to advance a socially responsible, sustainable and value added construction industry isn't just being noticed by those in the industry...
September 16, 2014