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.

he labor shortage in construction is no myth. Here in Texas, amidst the immigration debate, we’ve heard from business leaders who tell us that it now takes about four weeks in...
July 24, 2014
The Construction Citizen team has been tracking the progress of worker misclassification laws across the country, including the newly minted crackdown in Tennessee. ...
July 03, 2014
Texas’s capital city is economically booming in a way that’s almost unlike any other city in America, largely because of the region's technology industries. Now, it is time for...
May 20, 2014
Editor’s note: In April, Professional Janitorial Services Executive Don Dyer delivered this powerful testimony to the Texas House Business and Industry Committee, which is...
May 08, 2014
In a marathon hearing held by Texas lawmakers on the issues of workers’ compensation and worker misclassification, representatives from businesses and labor came together to talk...
April 30, 2014
On Tuesday, the Texas House will consider what more needs to be done on the issue of worker misclassification. Mike Beeter, President and CEO of BRI Roofing in Fort Worth is very...
April 18, 2014
A Texas House Committee has scheduled a hearing on the issue of worker misclassification and what more the state may need to do to combat the problem that is particularly rampant...
April 10, 2014
An unfortunate reality of the industry we cover is that there are many instances of worker abuse. We have documented much of this on Construction Citizen over the years. ...
February 26, 2014
Now that the state is moving forward with a targeted crackdown on the practice of worker misclassification, which some in the construction industry have called “a cancer,”...
February 11, 2014