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Labor Attorney Irwin Aronson Explores the Misclassification of Workers on The Rick Smith Show

January 5, 2012

Listen to Willig, Williams and Davidson Partner Irwin W. Aronson on The Rick Smith Show - "Where Working People Come to Talk." This week Aronson focuses on the growing effort at legitimizing misclassification of workers by unscrupulous employers while exploiting workers and legitimate employers in the process.

The conversation springs from a Utah television station investigative report about a company that guides businesses in the use of construction workers, who are classified by their employers as "self-employed vendors," in order for those employers to evade requirements for payroll taxes, workers' compensation insurance premiums, unemployment insurance, social security contributions and other employment expenses. The scam gives bottom-feeding employers an unfair advantage against legitimately operating contractors and other employers (union and non-union) in the competitive bidding process by slashing employment related costs by as much as 25-30%, through stripping their employees of basic, legally mandated protections and pocketing the cost. This is an especially offensive form of worker exploitation during periods of economic upheaval that cries out for regulatory attention. Aronson also discusses the use of this tactic of evasion of the law as a method for such employers employing illegal immigrants who would otherwise appear in the federally sponsored EVerify system. By wrongfully classifying such workers as self-employed, the practice technically falls outside of the pre-hire certification process. And, all working people who are misclassified in this fashion risk losing Social Security credits, not having workers' compensation protection for work related accidents, injuries and diseases, being ineligible for unemployment insurance benefits, and many other requirements of worker protective legal frameworks.

To listen to the full interview, click on Exploring the Misclassification of Workers.

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