The Economic Policy Institute (EPI) reports Workers misclassified as Independent Contractors lose out on critical protections, benefits and Labor Rights - including minimum wage, overtime pay, unemployment insurance, the right to form a Union, and anti-discrimination protections in most States. The Analysis’ Executive Summary reports, additionally: These Workers bear the full financial costs of Social Security and Medicare contributions; The analysis estimates the cost of Independent Contractor status for 11 commonly misclassified jobs. For example, a typical Construction Worker, as an Independent Contractor, would lose as much as $19,526 per year in income and job benefits compared with what they would have earned as an employee. A typical Truck Driver, as an Independent Contractor, would lose as much as $21,532 per year in income and job benefits compared with what they would have earned as an Employee; Lost compensation due to misclassification also varies by State. Estimated annual per-Worker costs in lost compensation are as high as $26,253 for Truck Drivers in New Jersey; Home Health Care Aides, Janitors and Landscapers are some of the occupations most affected by misclassification, as well as being relatively low-paying jobs. Misclassification further threatens the economic security of these Workers, leaving them vulnerable to exploitation and harmful labor practices.

For More On This Labor News Report, Go To: Misclassifying workers as independent contractors is costly for workers and states | Economic Policy Institute