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.

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
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