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Woolsey Introduces Bill to Stop Employers who Cheat Workers

Today, Rep. Lynn Woolsey (D-CA) introduced a bill to end the misclassification of employees as independent contractors, a practice that strips workers of benefits and protections, puts responsible employers at a competitive disadvantage, and cheats taxpayers.  “Misclassification undermines workers’ rights by denying them access to important benefits and protections like workers’ compensation coverage, minimum wage and overtime protections, family and medical leave, and the right to organize and collectively bargain. This unscrupulous practice has gone unchecked long enough,” Rep. Woolsey said. “Ending misclassification is an important step toward paying down the national debt, empowering American workers and invigorating the national economy.”  Rep. Woolsey joined with her colleagues Rep. Rob Andrews (D-NJ) and Rep. George Miller (D-CA) to reintroduce H.R. 3178, the Employee Misclassification Prevention Act. This bill was also included among recommendations sent yesterday by the Democratic Members of the House Committee on Education and the Workforce to the Joint Committee on Deficit Reduction (the “Super Committee”), which is charged with identifying trillions in federal savings. 

“Misclassification is fundamentally unfair to our nation’s law-abiding employers, and unfair to the countless workers who are unlawfully stripped of basic protections like minimum wage, overtime, and the right to organize. Strengthening the law to prevent misclassification will level the playing field for those that follow the law and help to close an estimated $54 billion federal tax gap resulting from this illegal activity,” said Rep. Miller.  “The egregious practice of misclassifying workers as independent contractors needs to end because it is harming working families and putting responsible, law-abiding employers at a competitive disadvantage,” said Rep. Andrews. “We need to make certain that bad employers can no longer line their own pockets with unpaid payroll taxes. This legislation not only puts fair standards in place to remove incentives for misclassification, but it ensures that working Americans are given the rights they deserve and taxpayers are not being taken advantage of at a time when our country can least afford it.” (click on link to read full story)



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