Rep. Frederica S. Wilson and Other Lawmakers Introduce the Payroll Fraud Prevention Act of 2015

Statement

Today Congresswoman Frederica S. Wilson (FL-24), Ranking Member on the Subcommittee on Workforce Protections on the Committee on Education and the Workforce, introduced the Payroll Fraud Prevention Act of 2015, which amends the Fair Labor Standards Act to require that employers accurately classify their workers and provide employees with notice of that classification.

"Misclassification cheats hard-working Americans out of federally guaranteed labor rights and benefits, such as overtime pay, minimum wage, and family and medical leave. Misclassification cheats law-abiding businesses out of a level playing field. Misclassification cheats the American economy out of billions in tax revenues, putting a strain on already stressed programs like Medicare and Social Security," said Rep. Wilson. "The Payroll Fraud Prevention Act of 2015 will strengthen the Fair Labor Standards Act to ensure more American workers, businesses, and taxpayers receive the fair treatment they deserve."

Rep. Wilson recently hosted a standing-room-only briefing during which experts and advocates spoke about the consequences of misclassification for workers, the burden it places on businesses and how it strains the federal government. The event also featured two workers who have first-hand experience with this fraudulent practice and its adverse effect. The Department of Labor, which recently issued new guidance on misclassification has been laser-focused on this critical issue, which has been at the center of debates about how to classify workers for innovative new companies like Uber and Airbnb. Just last night, during a Facebook Q&A, Labor Secretary Tom Perez weighed in, stating that "whether you are an employee or an independent contractor is very fact specific."

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