Worker Misclassification Task Force
On January 14, 2009, Governor Baldacci issued an Executive Order establishing a Joint Task Force on Employee Misclassification. Misclassification occurs when an employer hires a worker and improperly classifies the person as an “independent contractor” rather than as an “employee”.
The Task Force is charged with examining the problem of employee misclassification, developing ways of improving communication and information sharing among task force and other public agencies, coordinating and strengthening enforcement mechanisms among state agencies and between the state and other jurisdictions, increasing public awareness of the illegality of and harms inflicted by misclassification, working cooperatively with affected groups to disseminate information and improve methods of identifying and reporting potential violations, and making recommendations for regulatory or statutory changes that would strengthen enforcement efforts.
Upcoming Meetings:
November 30, 2009 - Legal and Interagency Subcommittee Biweekly Meeting (Governor's Joint Enforcement Task Force on Employee Misclassification) December 14, 2009 - Targeting, Enforcement, & Monitoring Committee (Governor's Joint Enforcement Task Force on Employee Misclassification December 17, 2009 - Communication & Outreach Committee (Governor's Joint Enforcement Task Force on Employee Misclassification) December 28, 2009 - Legal & Interagency Committee (Governor's Joint Task Force on Employee Misclassification) December 3, 2009 - Governor's Joint Enforcement Task Force on Employee Misclassification November 23, 2009 - Communication & Outreach Committee (Governor's Joint Enforcement Task Force on Employee Misclassification)
meeting archive / minutes
How Employee Misclassification Impacts You
Misclassification has a serious adverse impact on not only the misclassified employees, but also on businesses and the general public.
Harms Workers
The employees are harmed because they are not covered by the state and federal laws designed to protect workers, laws such as Workers’ Compensation, Unemployment Insurance, minimum wage and overtime, workplace discrimination, Family and Medical Leave, and Occupational Safety and Health. In addition, these workers do not have access to employer-provided health insurance, retirement plans, vacation and sick leave, or other employee benefits typically offered in the workplace.
Harms Businesses
Businesses that misclassify workers harm law-abiding businesses in at least two ways. First, employers who properly classify their employees face a competitive disadvantage when bidding against misclassifying companies. Second, these employers who properly classify employees often subsidize certain costs of the misclassifying businesses, often paying higher workers’ compensation premiums and unemployment insurance taxes to subsidize misclassifying employers.
Shifts Costs on All of Us
The general public is harmed by misclassification through “cost shifting”. When a misclassified worker injured on the job needs medical care but is not covered by workers’ compensation or health insurance, hospitals and doctors recoup these uninsured expenses by increasing the cost of care, resulting in higher health care costs for all, and generally, higher health insurance premiums. Misclassified employees who become unemployed and are not covered by unemployment create a greater demand for public assistance, in turn increasing taxes at all levels of government. The general public is also harmed by lost taxes and insurance premiums. A 2005 study of Maine construction employers estimated an annual loss of $6.5 million in workers’ compensation premiums, $314,319 in lost unemployment taxes, and between $18 and $36 million annually in state income tax revenues. All the above must be made up by law abiding businesses and taxpayers. |
