Change To Win Urges Congress To Enact Misclassification Legislation

April 16, 2008 -- WASHINGTON, DC – The following is a statement from Change to Win executive director Greg Tarpinian on the introduction yesterday of federal legislation to prevent the misclassification of employees as independent contractors.

“Change to Win applauds the introduction of the Taxpayer Responsibility, Accountability, and Consistency Act by U.S. Reps. Jim McDermott, Richard Neal, and John Tierney. This long-overdue legislation will clamp down on companies that have turned tax fraud into a business model.

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“Genuine independent contractors and entrepreneurs have an important place in our economy and the workforce. But when unscrupulous companies cut corners and misclassify their employees as independent contractors, they are swindling everyone.

“Workers who are misclassified are cheated out of critical benefits from overtime pay and health insurance to unemployment insurance, workers’ compensation, and legal protections such as equal opportunity, job-protected family and medical leave, and the right to join a union. Responsible employers are undercut by unfair competition and cheated out of business. And every year, all levels of government are cheated out of billions of dollars in revenue, which means law-abiding employers and taxpayers end up paying more than their fair share.

“Misclassification of employees is one of the primary contributors to the tax gap. The Taxpayer Responsibility, Accountability, and Consistency Act will close loopholes and raise billions of dollars for the federal treasury and hard-pressed states, without raising taxes. It will also level the playing field for law-abiding employers who do right by their workers. And, it will ensure that workers have access to the wages and benefits, government insurance programs, and the employment rights they are due under existing law. Congress should promptly consider and enact this important legislation.”

Source: Change to Win