A new study conducted by The Century Foundation explores the active role that contractors play in worker misclassification and incidents of tax fraud in the Construction industry. Nearly 2 million workers nationwide are misclassified or paid off the books resulting in billions in lost revenue annually.
“Misclassification denies construction workers their legal rights and shortchanges these workers by $12 billion a year in lost wages and benefits nationwide. Misclassification also puts law-abiding employers at a significant cost disadvantage and amounts to tax fraud by corporations that skirt the law.” said Laura Valle-Gutierrez TCF Fellow and co-author of the report.
Contractors’ intentional decision to misclassify workers affords them a margin of profit, while workers are deprived of essential wages and benefits.
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