07.29.15

Scott Statement on the Payroll Fraud Prevention Act of 2015

 

WASHINGTON – Ranking Member Robert C. “Bobby” Scott issued the following statement today after Representative Frederica S. Wilson (FL-24), ranking Member on the Subcommittee on Workforce Protections, introduced the Payroll Fraud Prevention Act of 2015. The bill amends the Fair Labor Standards Act to require employers to accurately classify their workers and provide employees with notice of that classification:

“Workers who are misclassified as independent contractors are denied the wages they’ve earned, the benefits to which they’re entitled, and protections they deserve under the law. Dishonest businesses that misclassify their workforce put law-abiding small businesses at a disadvantage when competing for contracts.

“The Payroll Fraud Prevention Act would require proper classification of employees and make it a violation of the Fair Labor Standards Act to misclassify them. This bill is a responsible solution that helps both workers and businesses that play by the rules.”

 

Earlier this month, the Department of Labor issued new guidance to help employers properly classify their workers.

 

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