A Sustainable Workforce Starts With You

Payroll Fraud

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.

New Jersey is taking steps to further crackdown on what's been called a "scourge" in the construction industry as well as other sectors of the economy: Worker misclassification or...
After it passed the California Assembly earlier this year, that state's Senate is set to begin hearings this week on a sweeping reform to the way employers classify their workers...
A new report out of Harvard was published this week in the midst of a decades-long trend of employers increasingly misclassifying workers as independent contractors.  More...
Two construction company operators submitted altered payroll records to SCIF in order to pay a reduced premium on the company’s workers’compensation insurance.  In addition,...
We have written about the various ways that wage theft in the construction industry occurs through the misclassification of workers as independent contractors, whereby workers are...
Texas Republicans are once again taking aim at government-mandated collective bargaining agreements on taxpayer-funded construction projects around the state. A legislative...
Tax fraud is an epidemic in the construction industry, and it is costing communities billions of dollars in lost revenue.  Regional Councils affiliated with the United...
Many contractors throughout the greater Houston metropolitan area believe we have a labor shortage. Several contractors are holding on to their employees for dear life; some are...
A great company classifies workers correctly as employees, provides worker’s compensation, pays above prevailing wage weekly by check with taxes taken out and submits certified...