With Highway Trust Fund Set to Expire, Sen. Brown Announces Bill That Would Raise Funds For Transportation Projects and Protect Workers and Businesses by Addressing Tax Fraud and Worker Misclassification
"When employers misclassify employees, workers, other businesses, and taxpayers lose. But time and time again, employers use loopholes to protect their profits at the expense of the workers and businesses that play fairly," Brown said. "If employees are classified as independent contractors, then an employer doesn't have to pay them the benefits they've earned. This isn't right, and the Fair Playing Field Act would allow the
"Further, funding transportation projects is vital to strengthening our nation's economic competitiveness and ensuring that thousands of hardworking Ohioans continue to rebuild our bridges and roads," Brown continued. "The Fair Playing Field Act is a commonsense way to raise enough revenue to help the government pay for a short term transportation bill."
Worker misclassification is widespread in sectors like construction, transportation, maintenance and janitorial services, agriculture, and child care--industries that employ some of the lowest-paid and most vulnerable American workers. By classifying workers as independent contractors rather than employees under Federal tax law, employers can avoid paying payroll taxes, unemployment insurance and workers' compensation. Workers who are classified as independent contractors are also denied the protection of critical labor laws such as the Fair Labor Standards Act and the National Labor Relations Act, including minimum wage and overtime rules and the right to unionize.
Further, businesses that misclassify their workers can avoid many of their tax obligations, depriving governments of much needed revenues and adding to the federal deficit. In fact, the
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