U.S.
Senator Sherrod Brown
Helping
Ohio Workers Receive the Benefits They Deserve
To
cut costs, some employers cheat the system by misclassifying their
employees as independent contractors. Though the vast majority of
employers are honest, the ones that aren’t deny their employees
vital worker safeguards and avoid paying their fair share of Social
Security, unemployment insurance, and income tax.
This
practice, which occurs across several industries including
construction, trucking, landscaping, and home health care, cheats
workers out of the benefits they deserve and places honest employers
at a competitive disadvantage. It also robs taxpayers of funds that
would otherwise go towards public services. A 2009 study found that
Ohio alone loses an estimated $890 million a year from worker
misclassification. Ohioans don’t deserve to lose out because of
some employers’ dishonest business practices.
My
legislation, the Fair Playing Field Act would stop the
misclassification of employees, ensuring workers are protected and
employers are paying the taxes they owe. The bill allows the IRS to
order employers to properly classify their workers; requires
clarification of the rules for verifying employment status, making it
easier to determine for both employers and workers; and penalizes
employers who don’t follow the rules. At the same time it preserves
current law for professional services that have always treated their
employees as independent contractors.
Cracking
down on misclassification raises revenue that we can use to fund
future job-creating transportation projects like repairing the more
than 2,200 bridges in Ohio deemed “structurally deficient.” The
Highway Trust Fund, the main source of funding for critical
infrastructure projects, is running low. The fund expires on
September 20, but it’s possible that the Department of
Transportation could begin delaying payments as early as July 18. The
Fair Playing Field Act would raise $5.7 billion over the next ten
years, enough to help pay for a short-term highway bill to prevent
insolvency while Congress works towards passing a long-term
bipartisan transportation bill.
Preventing
worker misclassification through the Fair Playing Field Act will
protect Ohio’s workers, strengthen our economy, and provide a
much-needed solution to keeping our infrastructure reliable.
Sincerely,
Sherrod
Brown
U.S.
Senator
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