As many as 2.1 million U.S. construction workers were misclassified or paid off the books in 2021, according to a new report from the Century Foundation, a progressive think tank and research group focused on equity in education, healthcare and work. A Department of Labor rule change, effective March 11, will reverse a Trump-era shift and implement a new test for determining if a worker is an employee or independent contractor. One of the reasons why this is also harmful for other employers that aren’t doing this is a law-abiding employer is going to be less competitive than someone who’s able to cut their costs because they’re paying their workers off the books. They’re not paying for workers’ comp or overtime or unemployment insurance taxes; none of those other things that the law-abiding employers are paying for. So it also just undermines the ability to have a competitive market and a level playing field.
https://www.constructiondive.com/news/construction-worker-misclassification-issues/705135/