
Fact Sheet
Having been around since 2018, we have some experience under our belts. Let's share some.
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The Spread & Cost of Misclassification
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A U.S. Department of Labor Study in 2000 found that throughout the 1990s, nearly $200 million in Unemployment Insurance (UI) tax revenue was lost each year due to misclassification
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In 1984, an Internal Revenue Service study revealed 15% of employers misclassified 3.4 million workers.
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In 2009, the U.S. Government Accountability Office used the 1984 study to determine that $2.72 billion were lost due to independent contractor misclassification in 2006.
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A New York State Task Force found that misclassification costs the state $4.8 million in 2008.
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In 2014, New York’s Joint Employment Task Force on Employee Misclassification identified 24,000 instances of employee misclassification.
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Of those 24,000 misclassified workers, there was a combined total of $333.4 million in unreported wages & $12.2 million in UI.
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Between 2000 & 2007, misclassification increased from 106,000 to 150,000 workers, determined by state audits.