Are you paying your boss's taxes?
There are potentially hundreds of thousands of people who work as "contractors" but are legally employees. In the tech industry, Microsoft became the poster child for misclassification because of the Vizcaino verdict on permatemps. Now FedEx is becoming the poster child for misclassification. "If your boss tells you not only what to do but how to do it, the game is over. You're an employee."
-- February 20
New York Crackdown on misclassification
Following Governor Spitzer's executive order to target employers that misclassify their employees, the New York Department of Labor got serious and started investigations. In some cases, they are raiding companies after getting tips from employees. "Labor Commissioner Rebecca Smith said the state planned more sweeps that would look at not just the construction and restaurant industries, but also at car washes, janitorial firms and trucking companies."
The New York Department of Labor has listed a number of ways to send tips on misclassification to the proper authorities:
Misclassification of workers occurs when an employer improperly treats an individual as an independent contractor instead of as an employee. Because of this labeling, some employers attempt to avoid complying with unemployment insurance, workers’ compensation, social security, tax withholding, temporary disability, and minimum wage and overtime laws that protect workers. Paying workers off the books also fraudulently deprives workers of the protections they deserve. These practices also put law-abiding business at a competitive disadvantage because of the significant unemployment insurance and workers’ compensation expenses they incur for their employees.
The Joint Enforcement Strike Force includes staff from: the Department of Labor, the Attorney General’s Office, the Department of Taxation and Finance, the Workers’ Compensation Board and the New York City Comptroller’s office.
If you believe that you have been misclassified by your employer and want to file a complaint, please contact the Task Force in the department's Employer Fraud Unit, 24-hours a day at 1-866-435-1499. You may also contact the Task Force, weekdays at 518-485-2144 between 8am and 4pm or send us an email to
Please complete the Tip Sheet and fax it to 518-485-6172 or mail it to:
New York State Department of Labor
Liability and Determination, Fraud Unit
W.A. Harriman State Office Campus
Building 12 - Room 356
Albany, New York 12240If you think an employer is committing fraud by misclassifying its workers or is committing violations of New York State laws related to the employment of workers, it is important that you let us know about it. All allegations of fraud and violations are taken seriously, and you can remain anonymous. Please include as much information as possible. All information will be maintained in a fully secure environment.
FedEx Ground and FedEx Home Delivery drivers in New York should make good witnesses.
-- February 12
