March 13, 2008
Patrick Seeks Employment Fraud Crackdown
Gov. Deval Patrick has established a joint task force to stop employers from avoiding taxes and regulations by hiring workers under the table.
George E. Noel, the state's director of labor, will chair the Joint Task Force on the Underground Economy, and its members will include representatives of state agencies dealing with workplace safety, training and other labor issues.
According to the governor's office, a 2005 Bear Stearns Asset Management report estimates that as many as six million jobs nationwide may have shifted from the legitimate economy to the underground economy in recent years. Employers use tactics like paying cash and misclassifying workers as "independent contractors" to avoid taxes and evade government oversight.
The taskforce will encourage whistle-blowing on illegal employment activity, share investigative information across agencies, support prosecution of offenders and evaluate existing laws to suggest improvements.
George E. Noel, the state's director of labor, will chair the Joint Task Force on the Underground Economy, and its members will include representatives of state agencies dealing with workplace safety, training and other labor issues.
According to the governor's office, a 2005 Bear Stearns Asset Management report estimates that as many as six million jobs nationwide may have shifted from the legitimate economy to the underground economy in recent years. Employers use tactics like paying cash and misclassifying workers as "independent contractors" to avoid taxes and evade government oversight.
The taskforce will encourage whistle-blowing on illegal employment activity, share investigative information across agencies, support prosecution of offenders and evaluate existing laws to suggest improvements.
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