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A series of sweeps of construction sites in Connecticut this year has resulted in 27 "Stop Work" orders against contractors for misclassification of workers as "independent contractors." The results continue a disturbing trend in the state's construction industry. In the past year, the Connecticut Department of Labor reports that inspection and review of 108 construction projects and 299 contractors has resulted in 199 "Stop Work" work orders, an alarming rate of cheating.
"Some employers will misclassify workers as independent contractors with the intent of avoiding their obligations under federal and state employment law covering such matters as workers' compensation, unemployment taxes and payroll reporting," said state Labor Commissioner Sharon Palmer. "Unfortunately, when an employer fails to pay for the proper coverage for injuries suffered on the job, and a worker gets hurt, the state's taxpayers ultimately foot the bill."
Avoiding tax obligations gives cheating employers a significant advantage in competitive bidding and negotiated pricing within the construction industry and creates a funding gap for state and federal governments, among other problems.