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.

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...
Companies were allegedly set up under names and with owners who had no experience in running a company but who were coached and given contracts and employment documents allegedly...
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...
Another governor is taking action against worker misclassification, this time in Colorado. Just a couple weeks ago we told you that New Jersey Governor Phil Murphy created a task...
"With some audits suggesting that misclassification deprives New Jersey of over $500 million in tax revenue every year," the governor of that state is directing a task force to...
Ongoing efforts to root out the problem of worker misclassification in Wisconsin have resulted in the recovery of more than $1.4 million in unpaid taxes, interest, and penalties,...
Read an interesting compilation of the highest dollar amounts recovered from workers’ compensation fraud cases in the U.S. during 2017 - $697.4 Million of employer fraud from...
The past year was a tough one when it comes to the issue of worker misclassification. For about a decade, there was some significant progress in state legislatures across the...