The independent body that reviews jobless benefits decisions has asked lawmakers to delete two provisions from a proposal that that makes several changes to the state’s unemployment law, including ratcheting up penalties on employers for worker misclassification.
The top official at a prominent construction group is calling on the state to add to the penalties that can now be imposed on employers who knowingly misclassify direct employees as independent contractors.
The state has put four new investigators on the worker-misclassification beat – including one who had pursued military criminals in Iraq – and one of their first assignments is to clean up the construction industry.
State government is aggressively pursuing contractors and other employers who misclassify workers as independent contractors and trying to add teeth to the penalties those violators face.
On Sept. 15, the U.S. Department of Labor announced it awarded more than $10 million in grants to 19 states to help improve efforts to detect employers who improperly classify employees as independent contractors.