Wake County businessman Doug Burton had had enough of the unfair competition that North Carolina continues to sanction with its failure to pass meaningful laws to crack down on the wrongful treatment on employees as “independent contractors.”
In an excellent op-ed in this morning’s edition of Raleigh’s News & Observer, he lays out the increasing dire problem:
“Treating employees as independent contractors when in fact they are regular employees is a fraudulent business practice that has become an epidemic. Some call this “misclassification,” but it is in fact fraud that lets these cheating businesses – many from out of state – off the hook for basic protections, including minimum wage, overtime pay, workers’ compensation, health and safety protections, unemployment insurance, federal and state tax withholding, social security withholdings and matching and more.
This fraud is a growing problem that harms workers, puts a strain on government resources and provides an unfair advantage when these unscrupulous employers compete with law-abiding businesses. I see it every day. Other legitimate business owners see it, too, when they are regularly underpriced for jobs and there is no other explanation for such bids other than cheating. When cheating businesses classify employees as independent contractors to reduce labor costs, legitimate business and workers alike lose out.”
He goes on to explain why current proposals in the General Assembly are a start but fail to go anywhere close to far enough: Read More