Connecticut AG Wants Crackdown on Worker Misclassification

March 18, 2010

Connecticut Attorney General Richard Blumenthal is heralding recommendations of a state commission that would crackdown on companies that illegally misclassify employees as independent contractors, and dramatically raise fines for misclassification.

Blumenthal co-chairs the Joint Enforcement Commission on Worker Misclassification with acting Labor Commissioner Linda Agnew.

“A crackdown on misclassification cheating is long overdue — because it does devastating harm to taxpayers, workers and honest businesses,” Blumenthal said. “Calling workers independent contractors when they are really employees costs workers benefits, taxpayers revenue and honest businesses a fair opportunity to compete for work.”

Among the commission’s recommendations: increase the penalty from $300 per violation to $300 a day per violation, strengthen criminal sanctions against misclassification and jointly investigate misclassification complaints with other state agencies.

“Companies that misclassify employees as independent contractors harm not only workers, but other businesses,” Blumenthal said. “Failing to pay taxes and provide health and other benefits enables cheaters to underbid honest businesses.”

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