Charlotte-based Sandoval Construction was forced to suspend work on a Radisson Hotel in New London, Conn., after the Connecticut Department of Labor charged the company with improperly classifying employees as independent contractors.
The enforced work stoppage is part of a crackdown that affected 20 different sites in Connecticut. Over the past 14 months, the state DOL has inspected 158 construction sites, reviewed 600 contractor records—and issued 268 stop-work orders.
Note: State and federal departments of labor are cracking down hard on misclassification. Two reasons: It shortchanges workers—and it reduces tax revenue, something cash-strapped governments are looking for. Employers that misclassify employees as independent contractors face possible penalties in addition to back pay and benefits due the misclassified workers.
Advice: In doubt about a worker’s proper employee/contractor status? It’s time to call on your attorney for help.