Loren Steffy, in his Sunday column for the Houston Chronicle, spells out the impact of payroll fraud and worker misclassification on the US deficit. He says that two things...
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.
On July 13, Construction Citizen shared a story first reported by Dallas/Fort Worth television station WFAA about misclassification of workers on a school construction project....
Connecticut newspaper The Stamford Advocate reported that subcontractor John Dosky, owner of American Building Group LLC, was recently arrested by Connecticut State Police for...
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...
