Panel advises Tennessee legislators to stiffen worker misclassification penalties

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A Tennessee task force recommended sterner penalties for companies found to be misclassifying construction workers after a study revealed such misclassifications are costing the state millions of dollars.

February 23, 2012

A Tennessee task force recommended sterner penalties for companies found to be misclassifying construction workers after a study revealed such misclassifications are costing the state millions of dollars. It found that misclassification of employees—as independent contractors or those being paid off the books—accounts for 11 percent to 22 percent of all workers.

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