Willful Misclassification. Insurance Fraud. Tax Evasion. Untaxed Cash Pay. Money Laundering. Racketeering.

Honest Businesses Can't Compete with Ones that Cheat

Employer payroll fraud takes many forms—and they all give law-breakers an unfair edge for stealing jobs from honest companies and employees. Every year, these well-planned schemes steal billions from taxpayers, government agencies, insurers, Social Security, and more. Learn more about these crimes—and about the growing state and federal efforts to fight back.

Be fair to honest businesses. Fight payroll fraud.



“A billion dollar blueprint for a taxpayer rip-off”

A Fox8 WVUE New Orleans Special Investigation into Payroll Fraud uncovers the high cost of worker misclassification in the construction industry: “The business model is called misclassification of employees and, according to our research in Louisiana, it costs taxpayers annually at least $250 million.” CLICK HERE TO SEE MORE.

       
     
A new report by the Economic Roundtable shows that 1 in 6 California workers are victims of payroll fraud - a stat that jumped an alarming 400 percent since 1972.

 The report illustrates the negative impacts of this payroll fraud, such as hundreds of millions of dollars lost in state and federal taxes, fewer middle class construction jobs and the inability to attract or retain skilled workers.

Read the full report by clicking here.



       



    

The global McClatchy news service published a multiple-story special report on payroll fraud and misclassification Issues that flood the construction industry. Read the full series by clicking here.

Media Blitz Exposes Payroll Fraud as a Nationwide Epidemic

   

Thoughts from the experts...

  
"Misclassification deprives workers of earned wages and undercuts law-abiding businesses. Combating misclassification is one of several important steps the U.S. Labor Department is taking to promote shared prosperity and ensure that our economy works for everyone."  -Thomas E. Perez, U.S. Secretary of Labor

"Businesses that misreport workers obtain an unfair advantage over other law-abiding businesses.” - Marshall Stranburg, Executive Director, Florida Department of Revenue

"Working with the states is an important tool for ending misclassification and other workplace abuses. These collaborations allow us to better coordinate and ensure compliance with both federal and state laws alike." - M. Patricia Smith, Solicitor of Labor of the U.S. Department of Labor

"The misclassification of employees as independent contractors is workplace fraud. Rhode Island will not allow bad actors to take advantage of their employees by failing to provide them with necessary workplace protections like Workers' Compensation insurance, unemployment benefits and overtime pay. Allowing this activity to persist is unfair to Rhode Island businesses that play by the rules.” - Scott Jensen, Director of the Rhode Island Department of Labor and Training