The New York State Task Force on Employee Misclassification (comprised of the New York State Department of Labor, Department of Taxation, Attorney General’s Office and the Workers’ Compensation Board and the New York City Comptroller’s Office) has issued its annual report for 2013. The report highlights that last year, the New York State Department of Labor completed over 13,000 audits and investigations, found nearly 127,000 workers to have been misclassified as independent contractors rather than employees, and consequently assessed more than $55 million in unpaid unemployment insurance contributions.

 

Because misclassification can have serious consequences for employers and their workers, employers should consult with counsel if they have questions regarding whether their designation of workers as “independent contractors” is proper.