Thread by @AGKarlRacine

TUNE IN: I'm proud to join @EdLaborCmte to testify in support of the Payroll Fraud Prevention Act, a bill that will help deter a type of #payrollfraud that hurts workers, undercuts law-abiding businesses and cheats taxpayers.

Watch live at 10:15am ET: bit.ly/2mXkSNK

@EdLaborCmte LIVE NOW: I am testifying on how #WorkerMisclassification in DC's construction industry hurts the District and its residents: bit.ly/2mXkSNK #WageTheft

#WageTheft is when employers refuse to pay employees what they're rightfully owed—and it is ILLEGAL.

One type of this fraud is called #WorkerMisclassification where an employer improperly classifies an employee as an “independent contractor” to unlawfully cut payroll costs.

Companies that illegally misclassify employees as independent contractors are:

❌Stealing from workers
❌Evading taxes
❌Able to underbid law-abiding competitors

A recent study commissioned by our office found that companies that misclassify employees in DC can illegally reduce labor costs anywhere from 16% to 48%.

These employers often target low-wage and immigrant workers who may not fully understand their rights or how to seek relief.

This #WorkerMisclassification causes concentric harm—beginning with the worker, and radiating across the industry and to taxpayers.

I am encouraged that the proposed Payroll Fraud Prevention Act seeks to punish and deter this pernicious form of #wagetheft.