National Employment Law Project Fact Sheet on Misclassification

This indispensable fact sheet highlights the ravages of misclassification, both at the federal and state level, by highlighting recent studies conducted by the Congressional Research Service, U.S. Government Accountability Office and state labor task force reports.  Despite the ominous numbers regarding the damage exacted on employees and losses to government coffers, the fact sheet concludes that studies most likely underestimate the accurate scope of the problem because most statistics are derived from state unemployment insurance tax audits, which "rarely identify employers who fail to report any worker payments to state authorities or workers paid completely off-the-books – the 'underground economy' – where misclassification is generally understood to be even more prevalent."