Agenda - Council Work Session - 07/28/2026

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HOME - FACTS - TABLES - VIDEOS - INFOGRAPHICS - AGENCIES - RESEARCH Greenstein, Robert. (2018). Health Coverage Progress Stalls — Even as Economy Reduces Poverty, Boosts Income. Center on Budget and Policy Priorities. Kev Finding: Workers who have been misclassified are less likely to have private health insurance coverage —due to the drop in employer -sponsored health insurance coverage —and are more likely to rely on Medicaid. Theodore, Nik, Bethany Boggess, Jackie Cornejo and Emily Timm. (2017). Build a Better South: Construction Working Conditions in the Southern U.S. University of Illinois at Chicago; Workers Defense Project; Partnership for Working Families. Kev Finding: A survey of 1,435 construction workers in six Southern cities discovered 32% were misclassified as independent contractors or working off -the -books, 11% experienced wage theft in their career, and 43% said their employer had no workers' compensation policy. Cooper, David and Teresa Kroeger. (2017). Employers Steal Billions from Workers' Paychecks Each Year: Survey Data Show Millions of Workers Are Paid Less than the Minimum Wage, At Significant Cost to Taxpayers and State Economies. Economic Policy Institute. Kev Finding: Nationwide, wage theft costs up to $15 billion. Misclassification is one tactic that enables wage theft. Due to fear of deportation, immigrant workers are more likely to endure harmful and exploitative working conditions without reporting them. They are also less aware of appropriate reporting avenues. Victims are underpaid an average of 25% of their earnings. Women, young workers, and immigrants report minimum wage violations at a higher rate. Alexander, Charlotte. (2017). "Misclassification and Antidiscrimination: An Empirical Analysis." Minnesota Law Review, 101. 907-962. Kev Finding: According to Census and Social Security Administration data, the industries where misclassification is most prevalent include real estate, construction, truck drivers, and barbers and cosmetologists. Industries where misclassification is most prevalent also disproportionately employ women and people of color, increasing the risk that marginalized populations experience misclassification that can result in discrimination from a lack of Title VII protections. Most court cases that argue misclassification are brought by individuals not in the highly-misclassified industries, suggesting misclassified workers often do not engage in litigation. In the years 2005-2014, misclassification was brought as an argument in Title VII discrimination cases predominantly by physicians, surgeons, and insurance salespeople. McNicholas, Celine; Zane Mokhiber; and Adam Chalkof. (2017). Two Billion Dollars in Stolen Wages Were Recovered for Workers in 2015 and 2016— and That's Just a Drop in the Bucket. Economic Policy Institute. Kev Finding: In 2015 and 2016, $2 billion in stolen wages were repaid to victims of wage theft through litigation, state agency action, and class-action lawsuits. This figure is likely well below the amount actually stolen by wage theft yearly. Workers do not report instances of wage theft because of fear of retaliation, lack of resources, and uncertain remedies. Philips, Peter and David Blatter. ( '' ). Two Roads Diverge: Hidden Costs of the Low Wage Approach to Construction. University of Utah. Kev Finding: Doubling the percentage of construction subbed out to independent contractors leads to a 13.5% decline in payroll taxes and a 11% decline in workers' compensation and unemployment insurance. Employers engaged in payroll fraud and misclassification undercut the larger construction labor market by discouraging laborers to invest in training and encouraging casual attachments to the industry. Solis, Hilda. (2017). "Opinion: Wage Discrimination in Construction Industry Makes Minimum Standards a Good Idea." The Mercury News (San Francisco Bay Area). Kev Finding: One -in -six California construction workers are affected by misclassification and payroll fraud. Bonilla, Rick. (2017). "Op -Ed: Wage Theft is Preventable." The Daily Journal. Kev Finding: It is up to local cities to enact "wage transparency" ordinances to improve accountability. 55