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HOME — FACTS — TABLES — VIDEOS — INFOGRAPHICS — AGENCIES — RESEARCH <br />Parrott, James. (2007). Building Up New York, Tearing Down Job Quality: Taxpayer Impact of Worsening <br />Employment Practices in New York City's Construction Industry. Fiscal Policy Institute. <br />Kev Finding: An estimated 50,000 of over 200,000 New York City construction workers are misclassified or paid entirely <br />off -the -books. In 2005, illegal construction industry practices resulted in a loss of $489 million to the state. In 2008, this <br />rose to $557 million, showing these practices are becoming more common and impactful. <br />Parrott, James. (2007). New York State Workers' Compensation: How Big Is the Coverage Shortfall? Fiscal <br />Policy Institute. <br />Kev Findine: In New York State, misclassification across all industries leads to a loss between $506 million and $1.0 billion <br />each year in unpaid workers' compensation premiums. <br />Office of the Legislative Auditor. (2007). Misclassification of Employees as Independent Contractors. State <br />of Minnesota. <br />Kev Finding: 15% of Minnesota construction firms misclassified employees. The rates were highest in roofing (38%) and <br />drywall installation (31%) and lowest in road and bridge construction (10%) and site preparation (5%). <br />Ruckelshaus, Catherine. (2007). Providing Fairness to Workers Who Have Been Misclassified as <br />Independent Contractors. National Employment Law Project (NELP). Testimony before the Subcommittee <br />on Workforce Protections of the Committee on Education on Labor in the U.S. House of Representatives. <br />Kev Finding: Research estimates that misclassification rates in the construction industry could be as high as 40%. Later <br />research corroborated that misclassification was a growing practice at the time of this testimony. <br />Theodore, Nik and Marc Doussard. (2006). The Hidden Public Cost of Low -Wage Work in Illinois. University <br />of Illinois at Chicago. <br />Kev Finding: Low -wage jobs in 2001-2004 caused working families to rely on government assistance programs. These <br />families constituted 37% of public benefits spending in Illinois, including $92 million on families with construction workers. <br />Weil, David and Amanda Pyles. (2006). "Why Complain? Complaints, Compliance, and the Problem of <br />Enforcement in the U.S. Workplace." Comparative Labor Law and Policy Journal, 27(59): 59-92. <br />Kev Finding: For every 130 minimum wage violations in the United States, only one complaint is filed with the appropriate <br />regulatory agency. Explanations for this gap include the fear of retaliation from employers and lack of unionization. <br />Valenzuela, Abel; Nik Theodore; Edwin Melendez; Ana Luz Gonzalez. (2006). On the Corner: Day Labor in <br />the United States. University of California, Los Angeles; University of Illinois at Chicago; New School <br />University. <br />Kev Finding: Day laborers are predominantly Hispanic, foreign -born men. Nearly half of all surveyed day laborers were <br />victims of wage theft, either in nonpayment or underpayment. <br />Carre, Frangoise and Randall Wilson. (2005). The Social and Economic Costs of Employee Misclassification <br />in the Maine Construction Industry. University of Massachusetts Boston. <br />Kev Finding: 14% of construction firms misclassified workers; among employers who misclassify, 45% of workers are <br />misclassified. Overall, 11% of all construction employees are misclassified. State loses $314,319 annually in lost UI tax <br />revenues, $2.6 million in lost income tax revenue, and $6.5 million in lost workers' comp contributions. <br />Carre, Frangoise and Randall Wilson. (2004). The Social and Economic Cost of Employee Misclassification <br />in Construction. University of Massachusetts Boston. <br />Kev Finding: In Massachusetts from 2001 to 2003, between 14% and 24% of construction employers were estimated to <br />have workers misclassified as independent contractors. These employers misclassified around 40% of their workforce, <br />meaning at least 5% of the total construction workforce in Massachusetts may have been misclassified. Up to $4 million in <br />unemployment insurance and up to $7 million in income tax revenues are lost per year. <br />61 <br />