Special Report

Misclassification of employees as independent contractors hurts workers, businesses and taxpayers


Paper highlights problem in Kentucky and recommends action
Employers who improperly classify full-time employees as independent contractors are harming workers by denying them important legal protections, gaining an unfair competitive advantage over employers who follow the rules and costing taxpayers millions of dollars each year in lost revenue. Kentucky could benefit greatly by taking a few simple actions to better document misclassification, improve compliance with state law and target employers who repeatedly misclassify their employees. These findings are included in Cheating the System: How improperly classifying employees as independent contractors hurts workers, businesses and taxpayers, an issue brief released April 2, 2012, by the Kentucky Equal Justice Center.

Download a full copy of the issue brief here:

Cheating the System