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HOME - FACTS - TABLES - VIDEOS - INFOGRAPHICS - AGENCIES - RESEARCH <br />Erlich, Mark. (2020). "Misclassification in Construction: The Original Gig Economy." Industrial and Labor <br />Relations Review, 1-29. <br />Kev Finding: The misclassification of workers as independent contractors has predated the app-based gig economy, <br />particularly in construction where a cash -based underground system of compensation has lowered standards and been <br />among the major causes of the decline of union density. <br />Moe, Lina; James Parrott; and Jason Rochford. (2020). The Magnitude of Low -Paid Gig and Independent <br />Contract Work in New York State. The New School. <br />Kev Finding: 17.5% of low -wage independent contractors in New York worked in construction. <br />Erlich, Mark and Terri Gerstein. (2019). Confronting Misclassification and Payroll Fraud: A Survey of State <br />Labor Standards Enforcement Agencies. Harvard Law School. <br />Kev Finding: Misclassification, a tactic used by employers to reduce labor costs by depriving workers of protections, creates <br />a non-competitive environment against law-abiding employers paying market -based wages and benefits. <br />Bureau of Labor Statistics (BLS). ( ). Contingent and Alternative Employment Arrangement News <br />Release. U.S. Department of Labor. <br />Kev Finding: In 2017, 19% of independent contractors worked in the construction industry. See Table 8. <br />Cooper, David and Teresa Kroeger. (2017). Employers Steal Billions from Workers' Paychecks Each Year: <br />Survey Data Show Millions of Workers Are Paid Less than the Minimum Wage, At Significant Cost to <br />Taxpayers and State Economies. Economic Policy Institute. <br />Kev Finding: Nationwide, wage theft costs up to $15 billion. Misclassification is one tactic that enables wage theft. <br />Katz, Lawrence and Alan Krueger. ( ). The Rise and Nature of Alternative Work Arrangements in the <br />United States, 1995-2015. Harvard University; Princeton University. <br />Kev Finding: From 1995 to 2015, non-traditional employment rose from 11% to 16%, with online intermediary work, such <br />as Uber and TaskRabbit, accounting for only 0.5% of workers as of 2015. Workers in non-traditional employment <br />relationships earn less when compared to similar workers in traditional employment relationships. <br />Locke, Mandy and Franco Ordonez. ( ). "Taxpayers and Workers Gouged by Labor -Law Dodge." <br />McClatchy DC Bureau. <br />Kev Finding: Misclassification allows fraudulent contractors to underbid law-abiding businesses on publicly -funded <br />construction projects, as evidenced by contracts awarded in the economic stimulus following the Great Recession. <br />Carre, Frangoise. ( ).(In)dependent Contractor Misclassification. Economic Policy Institute. <br />Kev Finding: State -level studies show that 10%-20% of employers misclassify workers independent contractors. <br />Kelsay, Michael and James Sturgeon. (2011). The Economic Costs of Employee Misclassification in the <br />Construction Sector in the Commonwealth of Kentucky. University of Missouri -Kansas City. <br />Kev Finding: 26% of construction employers in Kentucky were engaged in misclassification. <br />Kelsay, Michael and James Sturgeon. (2010). The Economic Costs of Employee Misclassification in the State <br />of Indiana. University of Missouri -Kansas City. <br />Kev Finding: Nearly half (47.5%) of audited employers in Indiana were engaged in misclassification. <br />Belman, Dale and Richard Block. (2009). The Social and Economic Costs of Employee Misclassification in <br />Michigan. Michigan State University. <br />Kev Finding: 26% of construction firms misclassified employees. Among those who did so, 19% of their employees were <br />misclassified (i.e., 6% of the entire industry workforce), costing the state over $2 million in UI tax revenue. <br />4 <br />