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Ohio cracks down on worker misclassification

February 19 2009

Ohio will crack down on employers who misclassify workers as independent contractors, state Attorney General Richard Cordray announced Wednesday. Several state agencies agreed to exchange information in an effort to find such firms. The agencies include the Ohio Department of Job and Family Services, Ohio Department of Taxation and the Ohio Bureau of Workers' Compensation.

The state Attorney General's office estimated that misclassifying of workers cost Ohio $100 million that would have gone for unemployment compensation, $510 million in Bureau of Workers' Compensation premiums and $180 million in forgone state income tax revenue.

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