Testimony on Employee Misclassification in New York’s Underground Economy – Assembly Labor Committee

January 27, 2010. Testimony presented by James Parrott, FPI’s Deputy Director and Chief Economist, to the Assembly Labor Committee. Research shows that misclassification of employees as so-called independent contractors places a significant burden on taxpayers (including unpaid income taxes as well as avoidance of unemployment benefits and health insurance premiums) and has the broader effect of weakening job security and even physical safety. Over decades, government has established employment standards and social insurance systems to protect workers and responsible businesses from those who would cut corners. Vigorous enforcement is critically important.

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