CWS 3.0: April 25, 2012


Misclassifications: Mass. Firms Pay $11 Million

A total of $10.9 million was recovered from Massachusetts firms that misclassified workers as independent contractors as well as other infractions in 2011, according to an annual report released by the Massachusetts Joint Enforcement Task Force on the Underground Economy and Employee Misclassification. The amount is up from $4.4 million collected in 2010.

Some of the monies recovered included:

  • $3.0 million in restitution, penalties and fines for violation of the state’s independent contractor law as obtained by the Massachusetts Attorney General’s Office.
  • $3.7 million in overdue taxes collected primarily as a result of independent contractor misclassification, under-the-table payment and non-filing or under-filing of state taxes. These funds were recovered by the Massachusetts Department of Revenue.
  • The Massachusetts Department of Unemployment Assistance and the Massachusetts Department of Industrial Accidents also conducted more than 8,000 compliance checks on firms applying for various licenses and certifications, collecting $2.4 million in previously unpaid employment insurance taxes from employers.

For the full report, click here.


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