Tennessee to Target Construction Industry Employer Fraud

State officials say the Department of Labor has been expanding efforts to uncover employer fraud within the construction industry.

The efforts will help identify employers who are paying workers under the table, intentionally misclassifying workers as independent contractors and who are failing to report all wages paid.

The state Department of Labor & Workforce Development said a Nashville drywall firm accused of lying to an insurance company about how many employees were on its payroll was first to pay $300,000 in a settlement.

Officials say the fraud is typically used to avoid paying worker’s compensation and unemployment insurance tax premiums. It also gives deceptive employers an unfair competitive advantage over law-abiding firms.

Part of the effort includes the hiring of additional investigators to detect the fraud.