Payroll Fraud Bill Would Crack Down On Misclassification

Law360, New York (November 15, 2013, 4:52 PM EST) -- Sen. Bob Casey, D-Pa., introduced a bill Tuesday that would prohibit employers from misclassifying employees as independent contractors in order to evade taxes, fair labor standards and safety protections.

The Payroll Fraud Prevention Act specifically targets employers that shift the unemployment and workers’ compensation tax burdens to their employees, requiring them to issue a specific notice to all workers classified as independent contractors, informing them of their rights.

The prescribed notice also gives all workers the contact information for their local U.S. Labor Department office, and...
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