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- Employer Misclassification of Workers
Employer Misclassification of Workers
Misclassification of Workers
Misclassification occurs if an employer treats people as independent contractors when they are employees. Some employers use this tactic to avoid compliance with:
- Unemployment insurance (UI)
- Workers' Compensation
- Social Security
- Tax withholding
- Temporary disability
- Minimum wage and overtime laws that protect workers
When you pay workers off the books, it is fraud. It deprives workers of the protections they deserve.
These practices also put law-abiding business at a competitive disadvantage, because they incur expenses for UI and Workers' Compensation for their employees.
Joint Enforcement Strike Force
New York has a Joint Enforcement Strike Force with staff from:
- The Department of Labor
- The Attorney General's Office
- The Department of Taxation and Finance
- The Workers' Compensation Board
- The New York City Comptroller's office
The goals of this group are reflected in changes to the labor law under the Fair Play Act. These changes:
- Address misclassification in the construction industry
- Seek to end these unfair practices
- Ensure workers and employers of fair and equal treatment under the law
Report Fraud
Let us know if you think an employer is committing fraud by:
- Misclassifying its workers
- Breaking New York State labor laws
We take all allegations of fraud and violations seriously. You can remain anonymous. Please include as many details as possible. We keep all information secure.
Submit complaints to the Task Force in the department's Employer Fraud Unit, 24-hours a day at 1-866-435-1499.
You may also contact the Task Force, weekdays at 518-485-2144 between 8 am and 4 pm or send us an e-mail. Or, you can complete the Tip Sheet.
Fax it to: 518-485-6172
Mail it to:
New York State Department of Labor
Liability and Determination, Fraud Unit
W.A. Harriman State Office Campus
Building 12 - Room 356
Albany, New York 12240
Reports
- Annual Report of the Joint Enforcement Task Force on Employee Misclassification (February 1, 2008)
- Annual Report of the Joint Enforcement Task Force on Employee Misclassification (February 1, 2009)
- Annual Report of the Joint Enforcement Task Force on Employee Misclassification (February 1, 2010)
- Annual Report of the Joint Enforcement Task Force on Employee Misclassification (February 1, 2011)
Other Efforts
The New York State Department of Labor and other partner agencies share data to uncover fraud. This helps assure compliance with employment, tax and insurance laws.
The department's Unemployment Insurance Division and the Internal Revenue Service also share data -- including audits and investigations. New York is a signatory to the Federal-State Questionable Employment Tax Practices (QETP) program. For details, please view the QETP Progress Report.