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.

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
Now that the dust has settled from the regular session of the Texas legislature, there is some good news to report on the issue of worker misclassification. The broad...
July 01, 2013
“If a piece of the building falls to the ground and breaks, they have insurance for that,” said a middle-aged man in a wheelchair in Houston. I sat in a small portable building...
June 13, 2013
As experts and industry leaders get a look at the specifics of the federal immigration reform bill being pushed in the United States Senate, the devil is beginning to emerge from...
June 11, 2013
While lawmakers in Texas this year took a pass on a broad crackdown on companies that misclassify their workers, other states are ramping up their efforts. In Connecticut, for...
June 05, 2013