Worker Misclassification in the U. S. Construction Industry

Authors

  • Negin Kazemi  Graduate Student, Department of Architecture, Islamic Azad University, Shahre Rey, Iran
  • Nasim Zahraeipoor  Graduate Student, Department of Architecture, Varamin, Tehran , Iran

Keywords:

Misclassification, Cost-Shifting, Labour Costs, Misclassified Workers, Construction Industry, Independent Contractors, Worker Reform

Abstract

The US construction industry is one of the largest industries in the world, employing millions of workers each year in the U.S. alone. Unfortunately, the industry is rampant with several unethical practices- one of the most damaging and impactful, being the misclassification of workers. This occurs when companies catalog individual workers as independent contractors. This not only costs the government an estimated $3.5 billion each year, but is incredibly damaging to the workers and their families. Often times workers categorized as independent contractors who are actual singular workers do not receive benefits such as social security services or health insurance. Additionally, independent contractors are not covered by the National Labor Relations Act, which leads to many of these individual workers being paid below minimum wage and not receiving overtime pay. While worker misclassification reduces a company’s costs on an initial bid, this unfair advantage over other companies creates a negative push for others to break these laws as well. Thus, not only affecting employees, the workers, and their families- but also the general public through cost- shifting. This unethical practice of misclassification needs to come to an end.

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International Journal of Scientific Research in Science, Engineering and Technology

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Published

2018-02-28

Issue

Volume 4, Issue 1, January-February-2018

Section

Research Articles

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How to Cite

[1]
Negin Kazemi, Nasim Zahraeipoor, " Worker Misclassification in the U. S. Construction Industry, International Journal of Scientific Research in Science, Engineering and Technology(IJSRSET), Print ISSN : 2395-1990, Online ISSN : 2394-4099, Volume 4, Issue 1, pp.530-536, January-February-2018.