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.

As a longtime supporter of comprehensive immigration reform, I am more optimistic than ever about a real solution coming out of Washington.  The partisanship and ideology...
October 02, 2013
Real independent contractors are easy to identify.  They are hired to perform a specific project, they bring their own tools, they have their own business cards, and they...
September 30, 2013
University Calls the Allegations “Concerning”Students attending classes at the University of Texas at Austin this fall have a chance to “Live Big. Live Better” at some new luxury...
September 04, 2013
As I continue to travel around Texas to visit with construction company owners who are disgusted with some of the bad actors in their industry, I’m struck by just how candid many...
August 27, 2013
It has been three years since we began reporting about wage theft and worker misclassification here on Construction Citizen.  In September 2010 Jim Kollaer reported that...
August 23, 2013
A new law in Tennessee gives the state’s Department of Labor (DOL) sharper teeth with which to take a bigger bite out of workers’ compensation fraud in the construction industry....
August 08, 2013
The Fort Worth Star-Telegram delved into the issue of worker misclassification this Sunday with an extensive piece about the steps that the Texas Legislature has put the state on...
July 31, 2013
Laws Fight Questionable Practices that Misclassify Workers or Seek to Avoid Paying State Employment Taxes or PremiumsThe Illinois Governor’s Office reported on Tuesday that...
July 26, 2013
During the battle over a crackdown on worker misclassification in the Texas Legislature this year, I was struck by some of the testimony from business owners who had never been...
July 18, 2013