From the New York Employment Lawyer Blog, Villanueva & Sanchala write about the risks of misclassifying workers as independent contractors instead of employees in New York. They report that, according to the New York State’s Joint Enforcement Task Force, some job categories are more likely to be misclassified than others and discuss why a company may misclassify a worker. They write:
“Top Job Categories With The Highest Risk of Misclassification
Professional, Technical and Scientific Services
Construction of Buildings
Food Services and Drinking Places
Publishing Industries (except internet)
Administrative and Support Services
Specialty Trade Contractors
Ambulatory Health Care Services
Personal and Laundry Services
Performing Arts, Spectator Sports, and Related Industries
Educational Services
Motion Picture and Sound Recording Industries
Merchant Wholesalers and Nondurable Goods
Why Would Certain Businesses Try to A Misclassify Worker?
Misclassifying workers may sound like an innocuous issue but its effects ripple throughout our economy. Businesses may try to label workers as independent contractors (i) to avoid paying payroll taxes; (ii) to decrease their costs in order to gain an unfair advantages over compliant businesses; and (iii) to deprive workers protection under certain employment laws and job safety standards. As a continuation of point three, some business owners mistakenly believe that workers will be deprived of unemployment insurance benefits and workers compensation benefits as well and they will save money from contributing to those benefits. However, a filing a claim for benefits is one of the trigger for a government audit or investigation can be commenced and, depending on the circumstances, misclassified workers can be eligible for benefits….”
Read the full story at New York Department of Labor Lawyer Update: Independent Contractor versus Employee Misclassification Battle Stays Hot
