Website will scrutinize businesses that use independent contractors.
Michigan Attorney General Dana Nessel, and several Democrat state lawmakers, announced efforts to halt payroll fraud by businesses that misclassify workers by reporting them as self-employed independent contractors, or paying them under the table. The new unit will be established within the Michigan Attorney General’s Office and workers can report violations on a special website.
Legislation from last session that would increase penalties and provide for other remedies against an employer that violates state labor laws is also expected to be reintroduced soon. In a 2018 State Ballot, Michigan NFIB members were asked: “Should new legislation be passed to increase enforcement of proper payment of wages to workers?” the results were 50 percent NO, 32 percent YES and 18 percent Undecided.
It remains to be seen if this will be an even-handed effort at enforcing existing rules and laws, or a fishing expedition being pushed by organized labor to discourage the use of legitimate independent contractors.
