Thursday, August 13, 2009
More Workplace Fraud Regulation on the Horizon for Employers
On the heals of the passage of the Workplace Fraud Act of 2009 during Maryland’s 2009 Legislative Session, Governor O’Malley has issued an Executive Order to create The Joint Enforcement Task Force on Workplace Fraud. The Task Force is comprised of representatives from various state agencies including, the Department of Labor, Licensing and Regulation, the Attorney General’s Office, the Comptroller’s Office, and the Workers’ Compensation Commission. The Task Force was created to build on the identification and enforcement efforts made by the passage of the Workplace Fraud Act to target employers that misclassify employees as independent contractors. The Task Force is charged to coordinate investigations to determine if employees are being improperly identified as independent contractors, and identify and facilitate the filing of complaints against potential violators.
Although the Workplace Fraud Act of 2009 only applies to two industries: construction and landscaping, the Task Force sets no limitation on industries, and can essentially target all industry sectors. The Executive Order also charges the Task Force to issue a report to the Governor by December 31 proposing possible legislative and regulatory changes to “reduce or eliminate any barriers to the Task Force’s operations” and “enhance the investigation, enforcement, and prevention of workplace fraud.” Employers should prepare themselves for possible additional burdensome legislation regarding misclassification of employees during the 2010 Maryland Legislative Session.
While the Maryland Chamber condemns any business that intentionally misclassifies employees as independent contractors, we opposed the Workplace Fraud Act during the 2009 session, raising several concerns about unintended consequences. We will likely oppose any legislation introduced in the 2010 session that attempts to burden good employers by imposing additional unnecessary regulations. For more information, contact Allyson Black at .(JavaScript must be enabled to view this email address).
