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.

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
Editor’s note: More and more news outlets are covering the epidemic levels of cheating in the construction industry and we’re thrilled to see it.  One of the latest and best...
September 11, 2014
The cheaters in construction who all too often get away with avoiding payroll taxes and responsibility for their workers’ injuries are coming under even more scrutiny.  We’ve...
September 03, 2014
Because of an absence of federal action on the problem of rampant worker misclassification in construction, we continue to track the progress of states across the nation that are...
August 28, 2014
As we've written numerous times, a primary way to deter cheating in the labor market in construction is for the hammer to be dropped on companies that don't follow the law. ...
July 29, 2014