There's been a lot of talk in North Carolina about workers' compensation fraud. However, we've long observed that the more serious fraud problem is employers misclassifying employees as "independent contractors" in an effort to avoid covering them with workers' comp insurance.
Now, a new study from the Economic Policy Institute (available here) finds that misclassification is a significant problem.
According to the EPI and author Francoise Carre, misclassification is particularly prevalent in industries like construction, where workers' comp insurance premiums are quite high. Misclassification harms workers and deprives state and federal governments of needed tax revenue.
An employee classified as an independent contractor is responsible for the full cost of his or her health insurance and does not qualify for overtime pay or workers' compensation.
Our lawyers have seen how often these classification games are played. We've observed how employers try to slide through loopholes in the system by designating employees as independent contractors. We know these tricks and we know how to fight them.
If you live in North Carolina, you've suffered a workplace injury and your employer is arguing that you're an independent contractor and thus ineligible for workers' comp, our lawyers want to speak to you. Please call White & Stradley, PLLC today at 919-863-9397 for a free consultation.