Change to Win Applauds Introduction of the Employee Misclassification Prevention Act
FOR IMMEDIATE RELEASE
April 22, 2010
CONTACT: Debra Reed for Change to Win, 202-528-4214 or Debra@pointblankpa.com
WASHINGTON, DC -– Change to Win today applauded and thanked U.S. Senator Sherrod Brown (D-OH) and U.S. Rep. Lynn Woolsey (D-CA) for their leadership in introducing the Employee Misclassification Prevention Act (EMPA).
“When unscrupulous companies cut corners and misclassify employees as ‘independent contractors,’ workers are cheated out of important benefits and legal protections. Responsible employers who play by the rules are undercut by unfair competition, and our cash-strapped cities and states – already looking at huge budget deficits – are losing out on billions of dollars in badly needed revenues,” said Anna Burger, Chair of Change to Win.
“American workers deserve standard workplace benefits such as the minimum wage, overtime pay, unemployment insurance and workers’ compensation. They should be protected on the job by anti-discrimination and health and safety laws.
“This is not primarily a problem of shady fly-by-nights or unsophisticated mom-and-pop small businesses. Major multinational corporations, and sometimes significant segments of entire industries, use misclassification as a business model to cut corners, gain a competitive edge, and maximize profits,” Burger said. “It’s only reasonable that employers should be required to properly classify workers and keep records.”
The U.S. Department of Labor has conservatively estimated that 10-30% of the nation’s businesses misclassify at least some of their workers. Misclassifying employees as independent contractors – or just paying workers off the books altogether – has exploded in recent years, necessitating comprehensive action. Rep. Jim McDermott (D-WA) and Sen. John Kerry (D-MA) have introduced legislation to close the tax loopholes that let businesses off the hook for misclassification. The Obama Administration has proposed a new initiative in the Dept. of Labor to step up enforcement of the law and help states go after violators. And Rep. Jerry Nadler (D-NY) will soon be proposing a measure to address the widespread misclassification of port truck drivers.
“Today, we open up another front in the fight against this abuse of the law. This bill is long overdue and we are delighted Senator Brown and Congresswoman Woolsey are standing up to fight for the rights of workers,” concluded Burger.
