Today's post comes from guest author Leonard Jernigan, from The Jernigan Law Firm.
The defendants misclassified 77 employees as independent contractors and violated the Fair Labor Standards Act (FLSA) by denying these workers access to critical benefits, including minimum wage, overtime, family and medical leave, unemployment insurance, workers’ compensation and failing to maintain accurate payroll records.
Misclassifying employees negatively impacts our economy, generating losses to the U.S. Treasury, Social Security and Medicare funds, state unemployment insurance, and state workers’ compensation funds. It also leads to unfair competition because businesses that play by the rules are at a disadvantage.
This problem has become so acute in Tennessee that last month the legislature passed Senate Bill 833, which has been signed into law and imposes penalties on construction companies for misclassifying workers in an attempt to evade workers’ compensation premiums.
A Tennessee study in 2012 revealed losses of up to $91.6 million in workers’ compensation premiums. North Carolina has identified the problem but has yet to take any action. Until states aggressively prosecute misclassification, this fraud will continue.
- "Opting Out" of Worker's Compensation Hurts Workers and Employers (Part 1) (workers-compensation.blogspot.com)
- A Labor Day Opportunity (workers-compensation.blogspot.com)
- Workers' Compensation Benefits, Employer Costs Rise with Economic Recovery (workers-compensation.blogspot.com)
- A Victory for Silica Dust Exposed Workers? (workers-compensation.blogspot.com)
- Cost Shifting vs. Cost Fixing (workers-compensation.blogspot.com)
- Report Recommends Raising Workers' Compensation Premiums (workers-compensation.blogspot.com)