CWS 3.0: March 26, 2014

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State Assesses $12.2 Million for Misclassification in 2013

Employers that misclassified workers in New York State were assessed nearly $12.2 million in unemployment insurance contributions during 2013, according to the annual report from the Joint Enforcement Task Force on Employee Misclassification. The report was released last month by the New York State Department of Labor.

The report noted 24,000 instances of employee misclassification that were discovered in 2013 along with more than $333.4 million in unreported wages.

Misclassification of employees is defined by the report as both misclassifying workers as independent contractors and “unreported employment” where employees work off the books.

The report, looking at misclassification of independent contractors alone, said there were nearly 114,000 instances of misclassification since August 2007, and nearly $1.8 billion in unreported wages found.

The New York State Department of Labor, overall, completed more than 13,000 audits and investigations in 2013.

Job categories with the highest incidents of worker misclassification include:

  • Professional, scientific and technical services
  • Food/drink services
  • Administrative and support services
  • Ambulatory healthcare services
  • Construction of building
  • Performing arts, spectator sports and related industries
  • Specialty trade contractors
  • Personal and laundry services
  • Couriers and messengers
  • Motion picture and sound recording industries

Task Force members include the New York State Department of Taxation and Finance, New York State Workers’ Compensation Board, New York State Workers’ Compensation Board Fraud Inspector General, the New York State Attorney General and the Comptroller of the City of New York.

To go directly to the report, click here.