Kotowski said Alabama is the 16th state to sign an agreement to share information and coordinate enforcement.

Independent contractors pay their own employment taxes, while businesses pay those for regular employees.

Kotowski said that when workers are misclassified at independent contractors, the government misses out on revenue and workers are often denied family and medical leave, overtime pay, minimum wage pay and unemployment insurance. He said legitimate businesses are also hurt because they have to compete against businesses skirting the law.

Washington said more than 1,500 misclassified workers were found in Alabama last year. “And that number is growing each year,” he said.

Kotowski said about two-thirds of the cases result from worker complaints and ...

More at source: Insurance Journal

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