Utah Contractors to Pay $700,000 for Misclassifying Employees

April 29, 2015

The U.S. Department of Labor has ordered three large Utah contractors to pay back wages and damages to more than 1,000 former employees, Construction Dive reports.

The federal government has been more stringent in cracking down on a practice widespread in the construction industry, wherebyemployers misclassify employees as independent contractors to avoid paying payroll, unemployment taxes, and worker’s compensation.

Despite popular belief in the industry, such cases are not reserved for bigger construction firms. One unhappy employee in a smaller firm can also start an investigation that could cost thousands of dollars in back wages and penalties.

Find out more on Construction Dive.

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