Long Island Newsday reports that three men employed to assist with the Hurricane Sandy cleanup were misclassified as independent contractors. New York State labor laws specify that “labors, mechanics, and workers” are entitled to prevailing wages and misclassification as an independent contractor allows employers to get around paying prevailing wages. To read more, click here.
Bloomberg reports that thirty states now have laws on the books to fine employers for improperly classifying their employees or failing to declare their income. “The misclassification of employees as independent contractors is a nationwide problem affecting millions of workers that continues to grow…” To read more, click here.
Regulators are asking homebuilders in Phoenix, AZ to explain what steps they are taking to ensure that illegal hiring practices are addressed within the local construction industry. This comes after regulators noticed a disturbing trend responsible for decreasing state construction-employment numbers. To read more, click here.
Arizona man, John Jackson has been working to expose illegal employment practices in the local home-construction industry. His efforts have garnered both praise and criticism, but more importantly, he has drawn attention to a growing problem in the Arizona home-construction industry. To read more, click here.
Ohio business owners, Michelle Scaggs and Frederick Diebert were sentenced to two and half years in prison and ordered to pay more then $200,000 in restitution after being convicted of workers’ compensation fraud. The judge commented on the defendants lack of remorse during the sentencing portion of the trial. To read more, click here.
It is reported that Massachusetts has recovered more than $21 million over an 18-month period in owed revenue recaptured through the collaborative work of the state’s Joint Enforcement Task Force on the Underground Economy and Employee Misclassification (the Joint Task Force). Governor Deval Patrick established the Joint Task Force in March of 2008 to restore fairness to the Massachusetts economy by addressing employer fraud and misclassification. To read more, click here.
The Connecticut Department of Labor’s Division of Wage and Workplace Standards recovered more then $6.5 million in unpaid wages for CT workers the Governor’s office announced. Of the $6.5 million, $1.9 million goes to workers who were not paid that correct amount while working at public contract construction sites. To read the full press release, click here.