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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.

The US Department of Labor’s Wage and Hour Division (WHD) has a website with specific information about the issue of worker misclassification, also known as payroll fraud, and the...
According to an article in the Insurance Journal Online, advocacy groups and government organizations in Florida are bombarding lawmakers with suggestions for litigation which...
Governor Jerry Brown recently signed two new bills into law that will address the misclassification and wage theft issues in a much stronger fashion.  According to an...
Some employers who have been paying employees as independent contractors have now been given a chance to reclassify these workers and move forward without paying the penalties and...
On Thursday, October 6, the Houston Interfaith Worker Justice Center (HIWJ) hosted an event to raise awareness of the wage theft crisis in America.  The Houston Wage Theft...
Last week, Secretary of Labor Hilda L. Solis and IRS Commissioner Doug Shulman signed a “memorandum of understanding” between the US Department of Labor and the Internal Revenue...
According to press releases from the US Attorney’s Office for the Southern District of Florida in recent weeks, two separate contractors have each been convicted of issuing...
Last week, we attended a dinner of the Houston Interfaith Worker Justice Center at which a vote was taken on the worst case of wage theft and worker abuse on  the cases where...
Agents of the government of northern California’s Butte County have taken steps to deter contractors working in the swimming pool and roofing industries from cheating the workers...