• In first 4 months of operation, sweeps of just 117 employers triggered 35 full
investigations for Unemployment Insurance tax fraud.
• First 16 finished cases netted 2,078 misclassified workers, $19.4 million unreported
pay, and more than $856,000 in additional Unemployment Insurance taxes alone.
• Revised NY audit criteria found 254% more misclassified workers than per DOL rules.
• 17 Labor Standards cases found (to date) 646 underpaid workers due $3.02 million.
NIOSH--University of Kentucky Study Finds 92% Who Lack Workers Comp Also Lack Health Insurance;
Uncovered More likely to be Injured on Job
CALIF--WORKERS COMP PAYROLL FRAUD: EXTENT AND IMPACTS ON HONEST EMPLOYERS (UC Berkeley)
USDOL--MISCLASSIFICATION IN CONSTRUCTION WILL BE COMPLIANCE & ENFORCEMENT FOCUS IN 2008
WASH State--Unregistered Firms Evaded $274M in 2004 Taxes and Workers Comp (Joint Agency Report)
NYC--Taxpayer Impact of Underground Economy in NYC Construction (Fiscal Policy Institute, 12-07)
MINN--Misclassification of Employees as Independent Contractors (Office of Legislative Auditor, 11-07)
Planmatics Study for USDOL on Unemployment Insurance
GAO Study on Reducing Tax Gap 2005
NY State--How Big is the Workers Compensation Shortfall? (Fiscal Policy Institute)
GAO--Employment Arrangements: Improved Outreach Could Help Insure Proper Classification
Bear Sterns--Underground Labor Force is Rising to the Surface
NY State--The Cost of Worker Misclassification in New York State (Cornell)
NYC--The Underground Economy in New York City's Affordable Housing Industry (Fiscal Policy Institute)
MASS.--Social and Economic Costs of Misclassification in Construction (Harvard)
MAINE--Economic Costs of Misclassification in Construction (Harvard)
Coopers-Lybrand--Projected Loss of Federal Revenue Due to Misclassification
50 STATES--Combating Misclassification in the States: Legislative Reform Models (National Employment Law Project)
Connecticut--Cost to Connecticut of Employee Misclassification 1992
Florida--Part I Loss of Florida Workers Comp. Premiums in 1997
Florida--Part II Loss of Florida Workers Comp. Premiums in 1997
GAO 1996 Testimony on Misclassification
ILLINOIS--Economic Costs of Employee Misclassification in Illinois
Canada--Attacking the Underground Economy in Ontario 3-04
Canada--Estimated Revenue Losses due to Underground Practices in Ontario
Canada--Underground Economy Bad for Construction Industry, Bad for Government, Too
