ABSTRACT
This chapter aims to profile and document the extent of worker misclassification in New York, relying on audit data provided over a four-year period, from 2002 to 2005, and focusing on the costs of this practice to three groups: employers, employees and taxpayers. The chapter turns now to the trends in misclassification of employees at those firms found to be noncompliant. The percent of employees misclassified at all noncompliant firms has remained relatively stable, though slightly increasing over the four-year period. The issue of worker misclassification has increasingly garnered considerable interest within the United States. This issue has become one of paramount importance to not only employers and employees. The chapter considers the use of audit data as the methodological tool. This approach was predicated on studies performed by the Department of Labor and also scholarly research assessing misclassification within individual states, such as Massachusetts and Maine.
