'Independent Contractor': beyond calling it a dodge ... how to use misclassification to exploit undocumented immigrants.

Union Leader, Construction Company: 'Independent Contractor' Dodge Costly to Workers, States, Firms | Wednesday, April 11, 2007

(Press Associates, Inc.)
WASHINGTON (PAI)--The “independent contractor” dodge--a tactic unscrupulous construction companies use to avoid treating their workers legally, paying
taxes and following workers’ comp and other laws--is costly to workers, governments and even other construction firms, two witnesses told the House Education and Labor Committee.

In one of a series of hearings on the state of U.S. workers, Bricklayers President John J. Flynn and Cliff Horn, a Chicago-area masonry contractor testifying for
his industry’s trade association, told lawmakers on March 27 that widespread use of “independent contractors” in the construction industry hurts everyone.

Flynn went beyond calling it a dodge. He said it is a “crisis” in the workplace that citizens--and even congressmen--are largely unaware of. Horn said the honest firms that treat workers right, like his own, have to compete against the shady characters.
The anti-union anti-worker Associated Builders and Contractors opposed any changes.

Under federal law, an “employee,” whose work is guided by supervisors and who is paid by the company and adheres to company rules and standards, is protected by a variety of federal and state laws. But an “independent contractor” is not. ...
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“They found this network would teach employers about how easily they could cheat the system. Accountants would actually coach employers how to use misclassification to exploit undocumented immigrants.

“And the most amazing part of it all was how easy it was to get this network to give up their tricks. It was as if they had no fear of being caught, of being exposed as part of a conspiracy to evade labor and tax laws. Our organizers’ story is chilling–because it illustrates how commonplace misclassification has
become. And that’s why we’re here today–asking this committee to fight for the basic right to be recognized as an employee, with all of the rights of an employee,” he concluded.
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