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Republicans, Democrats at Odds Over Misclassification Proposal

Sept. 26, 2019, 6:28 PM

A Democratic plan to combat worker misclassification drew partisan divisions between Republicans and Democrats during a Sept. 26 House subcommittee hearing.

The hearing focused, in part, on the renewed push behind the Payroll Fraud Prevention Act, which hasn’t yet been introduced in this Congress. It would penalize companies that wrongly classify their workers as independent contractors rather than employees.

A version of the proposal from the prior Congress would have amended the Fair Labor Standards Act to require employers to accurately classify workers and double the liquidated damages for unpaid wages owed to those wrongly treated as contractors. The bill ...

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