A couple of new items have been in the news, and both seem related to government agencies realizing they are losing money-a lot of money. The IRS noted that 80 percent of all construction sites have misclassification of employees by calling them “contractors.” The state of California has realized that many contractors on public funded jobs are cheating. Nationally, the IRS is going harder than ever after misclassification.
In California, the Department of Labor is introducing a Compliance Monitor Unit. This new unit will monitor projects in attempt to catch violators of wage fraud in the act, and prosecute on the spot. Will all this work? Who knows, but they seem to be paying more attention than ever before.