Workers Compensation Fraud Has Become A National Issue

 In Workers' Compensation Blog

workers-compensation-fraud-has-become-a-national-issueOver the last year, reporters in seven states have spent more than 12 months reviewing a nationwide employee fraud scheme involving 10 million construction workers and tens of billions of dollars of state and federal tax revenue.

The result of their investigation can be found in the McClatchy Report entitled Contract to Cheat. The report reveals that there is rampant labor fraud in the U.S. with a particular emphasis on the construction industry.

Across the United States, construction workers and other employees are being used to avoid taxes. In a practice known as misclassification, employers are defrauding states and the federal government.

Misclassification occurs when employers classify employees, in this case construction workers, as an independent contractors in order to avoid paying payroll taxes including social security, workers compensation insurance and Medicare.

Rampant labor law violations in states such as Illinois would be particularly hard. In a state where funding for schools, roads and other public institutions is always in jeopardy, the loss of state and federal tax revenue would be staggering.

Fortunately, while the rates of labor law violations in other states is nearly 40 percent, Illinois created a task force in 2012 to evaluate and fine employers who misclassify workers as independent contractors.  Additionally, Illinois strong history of unions has made it difficult for employers to misclassify workers.

Report Workers Compensation Violations

If your rights as a construction worker have been violated, the Illinois workers compensation lawyersat GWC Injury Lawyers have the resources to set your employer straight.

Call 1-312-464-1234 today to tell us the details of your injury and how your employer may be exploiting you.

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