October 1, 2010
Just another way to exploit workers
Unscrupulous employers who deliberately misclassify workers as “independent contractors” deprive them of legitimate protections under federal and state labor laws and cost those same governments billions of dollars in lost tax revenue each year. By cheating their workers, deceitful bosses are able to cut payroll costs by up to 30 percent, placing legitimate employers at a competitive disadvantage.
By definition, an independent contractor operates a business, and genuine independent contractors account for only a small fraction of the American workforce. But the number of misclassified workers is large and growing. In 2007, the Government Accountability Office (GAO) reported that 10 million workers in the United States were classified as independent contractors, an increase of more than two million in just six years. Other studies have found as many as 30 percent of employers misclassify their workers. While GAO has estimated misclassification of workers reduces federal revenues by up to $4.7 billion annually, other studies place this number closer to $7 billion.
Ask your member of Congress to support the Fair Playing Act of 2010
The Fair Playing Act of 2010 has been introduced in the U.S. House and Senate as H.R. 6128 and S. 3786, respectively. This legislation would end the fraudulent misclassifcation of workers who have a traditional employer-employee relationship with their company. We’re asking our readers to contact their U.S. Representative and U.S. Senators and urge them to co-sponsor this important workers’ rights legislation. Click here to look up the contact numbers for your member of Congress.
The contact person for them to sign on to H.R. 6128 in Congressman McDermott’s office is Toby Whitney 202- 225-3106 or Toby.Whitney@mail.house.gov. The contact person for them to sign on to S. 3786 in Senator Kerry’s office is Kathy Kerrigan at 202-224-2742 or Kathy_Kerrigan@Kerry.senate.gov .