States Going After Employers Who Misclassify Workers as Independent Contractors

October 18, 2013

  • October 18, 2013 at 1:25 pm
    Ed says:
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    And to compound the US Government not receiving their due tax monies, the employer often doesn’t report this labor to their Workers’ Compensation and General Liability insurer; with both policies having their basis of payroll.

  • October 18, 2013 at 1:46 pm
    jay says:
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    They “wrongly” misclassified workers? How about they fraudulently misclassified workers.

  • October 18, 2013 at 2:01 pm
    FFA says:
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    Will be more of this activity so employers can reduce their full time work force number to stay under 50 employees.

    • October 18, 2013 at 5:50 pm
      MeIsEinstein says:
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      A client of mine in Central Florida has 53 FT employees and in talking with him just yesterday what do you think he said? Yep, he will be letting 4 FT employees go to get under that magic number of 50 and try to stay there until as long as he can.

  • October 18, 2013 at 2:06 pm
    Boca Condo King says:
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    Also, if the worker is a 1099 ‘independent contractor’ no need to get an I9. Hire all the illegal immigrant labor you can.

  • October 18, 2013 at 3:46 pm
    Larry says:
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    Being going on in the insurance business for years while the government looked the other way and now all of sudden they see the lost revenue for the govt???? What about the wrongfully classified individuals and there lost revenue and damages….Does the govt of the people care about them and their lost revenues and damages???

    • October 21, 2013 at 11:31 am
      FFA says:
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      Larry, its not all of a sudden. Been seeing this numerous times over the years…

  • October 18, 2013 at 5:40 pm
    MeIsEinstein says:
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    This type of thing does NOT happen in Florida though.

    • October 26, 2013 at 3:04 pm
      Mike Porvaznik says:
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      MelsEinstein,

      I was expecting a LOL after your comment. Apparently you don’t get out of the office much and onto jobsites. There are a lot of laborers and other workers there that are not on anyone’s payroll report because they are illegals and contractors will continue to use them until the federal government installs e-verify or a better method to track legal employees.

      I also blame the businesses that continue to hire illegals and pay them under the table. Biggest offenders that I see, landscapers.

      • November 4, 2013 at 11:25 am
        Swede64 says:
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        Mike,

        I am not disagreeing with what you are saying but landscapers have a problem in that they cannot afford to pay prevailing wage and find anyone else willing to work at reduced wages. As long as the public will not pay more than $250 for that tree or more than $50 to get their grass cut, landscapers cannot operate at a profit without utilizing “illegals”

  • October 21, 2013 at 5:26 pm
    Dawn says:
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    Besides all the revenue and insurance premium lost, hiring employees under the table, typically at a lower salary with no benefits, and then not paying insurance and taxes, lowers operating costs drastically which allows companies to submit lowers bids for contracts. This is very discouraging and puts companies who play by the rules at a huge disadvantage. I hope the government fines companies as much as possible or takes away their license or permits for “hiding” employees.



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