The impact of worker misclassification
June 22 2007
ILR study influences national and state policy
Research question: What is the cost to workers, businesses, and New York State government and taxpayers when employers misclassify workers as independent contractors instead of classifying them as employees?
Conclusion: The impacts on all parties are substantial and real. Misclassified workers are denied many of the legal protections and benefits enjoyed by workers appropriately classified as employees. Businesses that misclassify workers as independent contractors reap an unfair competitive advantage over businesses that properly classify workers as employees; misclassification occurs frequently in the construction industry. And finally, government and the public bear a financial burden through lost tax revenues.
Learn more about this study:
- The Impact of Worker Misclassification (Full Article)
- The Cost of Worker Misclassification in New York State (Full Report)
- Impact Brief
- Mislabeling Workers, Albany Times-Union, June 18, 2007
- President John Flynn's testimony at the Workforce Protections Subcommittee Hearing (pdf)
- Video of Workforce Protections Subcommittee Hearing on the Education and Labor web site
- Michael Conroy, Director of Organizing, Presentation (pdf) and Misclassification web site
- NYS Governor Eliot Spitzer
