Agressive Enforcement Of Employee Misclassification

As I posted here last year, New York Governor Eliot Spitzer signed Executive Order No. 17 which created an inter-agency strike force to address the problem of employers who classify employees as independent contractors or pay workers off the books as part of the underground economy. The Joint Enforcement Strike Force includes staff from: the Department of Labor, the Attorney General’s Office, the Department of Taxation and Finance, the Workers’ Compensation Board and the New York City Comptroller’s office.

Misclassification of workers occurs when an employer treats an individual as an independent contractor instead of as an employee. As a result, compliance with unemployment insurance, workers’ compensation, social security, tax withholding, temporary disability, and wage and hour laws may be compromised.

Enforcement of employee misclassification issues is getting very aggressive in a variety of areas. Just look at the various agencies included in the State's task force. The message here is that you can run, but you can't hide.