Here is an interesting article about an expected increase in attention to employee misclassification and workers’ comp. Employee misclassification occurs when an employer designates a worker who is really an employer as an independent contractor for tax and workers’ compensation purposes. Another form of employee misclassification occurs when an employer misreports a workers job duties to its workers’ compensation insurance company in order to reduce workers’ comp costs.
Employee misclassification is workers’ comp fraud perpetrated by the employer;. The victims of employee misclassification include injured workers, honest employers and the public at large. Often employers who misclassify employees as independent workers do not pay for workers’ comp insurance at all. And even if they have workers’ comp that covers other employees, because the employer has not reported its purported independent contractors as as employees, a worker who is injured on a misclassified job may find his or her claim denied. When an employer misclassifies a worker as an independent contractor that employer gains an unfair competitive advantage against employers who play by the rules. Honest employers who accurately report their employees end up paying the freight for the less honest ones. The effect of all of this is to shift the medical and other economic costs of workplace injuries from the employer, who benefits from the employee’s labor, to the public at large.
If you have a question about employee misclassification and workers’ comp in North Carolina, please feel free to contact Board Certified NC Workers’ Comp lawyer Kevin Bunn for a free consultation about your NC workmans comp claim or injury.