Yearlong Investigation Reveals Widespread Worker Misclassification in Construction Industry

McClatchy reporters in eight newsrooms spanning seven states spent a year unraveling the scheme, using little-noticed payroll records that show how widespread the practice has become and what it costs us all

The McClatchy Company

Journalists at The McClatchy Company found that some businesses that received money through the American Recovery and Reinvestment Act of 2009 lied on their forms claiming employees were independent contractors. This allowed the employers to save money that would have been spent on taxes. According to the report, the rate of misclassification for construction workers is highest in Texas at 37.7%. North Carolina is close behind at 35.2% followed by Florida at 15.5%.

(Read the full report...)

 

 

Latest