Independent Contractor Abuse

Legislative Activity

1)  Fair Playing Field Act of 2012   (March 2012)

2)  Utah Worker Classification Coordinated Enforcement Law   (Signed 3/11/11)

3)  Nebraska Contractor Employee Classification Act   (April 2010)

4)  Delaware Workplace Fraud Act   (Signed 7/31/09)

5)  Colorado Misclassification of Employees as Independent Contractors   (signed 6/02/09)

6)  Maryland Workplace Fraud Act of 2009   (Signed 1/1/2009)

7)  PA House Bill  (June 2008)

8)  Kentucky 2008 House Bill 654   (Prohibit misclassification of employees) (Feb. 2008)

9)  Illinois Employee Classification Act of 2007   (Signed 8/6/2007)

10)  NJ Construction Industry Independent Contractor Act   (July 2007)


Executive Ordering

1)  NY Governor Executive Order


Worker Misclassification Studies

1)  NELP Summary of Independent Contractor Reforms: New State and Federal Activity
by Catherine Ruckelshaus & Sarah Leberstein (November 2011)

2)  Independent Contractor Misclassification Imposes Huge Costs on Workers and Federal and State Treasuries
by Sarah Leberstein (October 2011)

3)  Misclassification Overview by the National Employment Law Project (NELP)
by Sarah Leberstein (June 2010)

 4)  Independent Contractor Misclassification Imposes Huge Costs on Workers and Federal and State Treasuries
(June 2010)

 5)  Statement of Seth D. Harris Deputy Secretary U.S. DOL before the committee on health, education, labor, and  pensions
(June 17, 2010)

6)  New State of Maine Misclassification Brochures (April 15, 2010)

     a) How Worker Misclassification Harms You

     b) What You Need to Know About Hiring Independent Contractors

     c) Independent Contractor or Employee?


7)  The Cost of Worker Misclassification in New York State

8)  State of Maine Annual Report of the Joint Enforcement Task Force on Employee Misclassification
Laura Fortman, Task Force Chair and Commissioner, Maine Department of Labor, Julie Armstrong, Task Force Coordinator
(February 25, 2010)

 9)  The Social and Economic Costs of Employee Misclassification in Construction
Elaine Bernard, Ph.D. Robert Herrick, Sc.D., Francoise Carre, Ph.D.; Randall Wilson, (University of Massachusetts, Boston; Construction Policy Research Center Labor and Work life Program, Harvard Law School and Harvard School of Public Health) (2004).

10)  The Social and Economic Costs of Employee Misclassification in the Maine Construction Industry
(April 2005)

These two studies have taken a first and significant step in documenting employee misclassification in the Massachusetts and Maine construction industries. Misclassification occurs when employers treat workers who would otherwise be waged or salaried employees as independent contractors (self-employed). Forces promoting employee misclassification include the desire to avoid the costs of payroll taxes and of mandated benefits. Employee misclassification creates severe challenges for workers, employers, and insurers as well as for policy enforcement. This report documents the dimensions of misclassification and its implications for Unemployment Insurance and Income tax collection and for worker compensation insurance.

11)  The Economic Costs of Employee Misclassification in the State of Illinois
Michael P. Kelsay, Ph.D., James I. Sturgeon, Ph.D., Kelly D. Pinkham, M.S., (Department of Economics University of Missouri-Kansas City) (December 2006)

12)  Office of the Legislative Auditor State of Minnesota – Misclassification of Employees as Independent Contractors
The Program Evaluation Division was directed to conduct this study by the Legislative Audit Commission (April 2007)

13)  NELP Justice for Low-Wage & Immigrant Worker Project Summary of Pending Legislation
The following is a select summary of recent state legislative activity aimed at misclassification of employees as independent contractors (April 2007)

14)  Building Up New York, Tearing Down Job Quality
Taxpayer Impact of Worsening Employment Practices in New York City’s Construction Industry (Dec. 2007)

15)  Misclassification of wages: A problem that hurts everyone

16)  The Social and Economic Costs of Employee Misclassification in the Michigan Construction Industry
Dale L. Belman and Richard Block, School of Labor and Industrial Relations.
Michigan State University


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