On March 2, 2012, the Taxpaying Employers Against Misclassification (TEAM) Coalition sent a letter to House Appropriations Chair Hal Rogers urging his committee to ensure that proper resources are allocated to eliminate the blatant misclassification of employees as independent contractors — specifically, $14 million that was included in President Obama’s 2013 budget for the U.S. Department of Labor to combat Misclassification. This figure includes $10 million for grants to States to identify misclassification and recover unpaid taxes and $4 million for personnel at the Labor Department’s Wage and Hour Division to investigate misclassification.

TEAM sent a similar letter to Atlanta’s Mayor Kasim Reed asking him to take strong action against contractors working at the Hartsfield-Jackson Atlanta International Airport who have been committing payroll fraud by listing their employees as independent contractors.

See the letter below.

March 2, 2012

The Honorable Hal Rogers
Chairman
House Committee on Appropriations
H-307, The Capitol
Washington, DC 20515

Dear Chairman Rogers,

On behalf of the national coalition, Taxpaying Employers Against Misclassification (TEAM), representing thousands of employers, I am writing to request that you include $14 million in the Fiscal Year 2013 Labor, Health and Human Services, Education and Related Agencies Appropriations bill to detect and deter the misclassification of workers as independent contractors.

Taxpaying Employers Against Misclassification (TEAM) is a growing group of employers and employer organizations concerned about the issue of employee misclassification and payroll fraud.  When employers incorrectly classify workers as independent contractors rather than full-time employees to avoid paying the required taxes and benefits, it is a form of payroll fraud and tax evasion.  Furthermore, misclassification results in lost revenue for the Treasury and in the Social Security, Medicare, and Unemployment Insurance Trust Funds.

We strongly support the $14 million included in the President’s 2013 budget for the U.S. Department of Labor to combat Misclassification, including $10 million for grants to States to identify misclassification and recover unpaid taxes and $4 million for personnel at the Labor Department’s Wage and Hour Division to investigate misclassification.  As employers who correctly classify their workers and end up losing millions of dollars in business to employers who misclassify their workers as independent contractors, we know first hand how important it is for states and the Department of Labor to have the tools they need to curb this widespread abuse.

Again, we ask that you include $14 million in the Fiscal Year 2013 Labor, Health and Human Services, Education and Related Agencies Appropriations bill to detect and deter the misclassification of workers as independent contractors.

Sincerely,

Taxpaying Employers Against Misclassification (TEAM)