Anti-payroll fraud legislation introduced in Senate
U.S. Senators Sherrod Brown (D-Ohio), Tom Harkin (D-Iowa) and Richard Blumenthal (D-Connecticut) recently introduced legislation that is intended to reduce payroll fraud and protect employees' rights by providing them with their rightful protections, benefits and wages.
The Payroll Fraud Prevention Act would prevent employers from misclassifying their workers as independent contractors or non-employees in order to save money, which results in increased costs for taxpayers. Misclassified workers are not eligible for minimum wage, overtime, compensation or unemployment insurance, and are unprotected by health and safety regulations as well as anti-discrimination laws.
"This bill will protect workers and level the playing field for all employers," said Brown. "Honest businesses have enough challenges to worry about in a tough economy. They should not have to compete against companies that misclassify workers and evade their tax responsibilities."
According to a 2009 study that was released by the Ohio Attorney General’s office, the state loses at least $160 million a year as a result of worker misclassification.
Brown introduced similar legislation last year in the form of the Employee Misclassification Prevention Act.
The Payroll Fraud Prevention Act would prevent employers from misclassifying their workers as independent contractors or non-employees in order to save money, which results in increased costs for taxpayers. Misclassified workers are not eligible for minimum wage, overtime, compensation or unemployment insurance, and are unprotected by health and safety regulations as well as anti-discrimination laws.
"This bill will protect workers and level the playing field for all employers," said Brown. "Honest businesses have enough challenges to worry about in a tough economy. They should not have to compete against companies that misclassify workers and evade their tax responsibilities."
According to a 2009 study that was released by the Ohio Attorney General’s office, the state loses at least $160 million a year as a result of worker misclassification.
Brown introduced similar legislation last year in the form of the Employee Misclassification Prevention Act.
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