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Trucking companies that classify employees incorrectly face payrolling violation fines

Posted on October 23rd, 2012 Read time: 1 minutes

Thousands of truck drivers travel hundreds of miles in sometimes dangerous conditions without receiving benefits and proper worker protection, according to the North Jersey newspaper, The Record. The source reports that New Jersey lawmakers are cracking down on trucking companies that misclassify drivers as independent contractors.

State assembly members released a proposal to set stricter procedures for companies to prove their drivers are contractors. The proposal also suggests fining employers who improperly identify regular workers as contractors to save payroll expenses, according to the newspaper.

Classifying truck drivers incorrectly to lower payroll costs isn't limited to the state of New Jersey. According to a study released by the Drum Major Institute for Public Policy, 29,500 drivers in New York alone are considered misclassified, representing millions of dollars in wages that were never received.

In New Jersey, if the proposal passes, employers who purposely misclassify workers or conspire with employees to portray them as contractors would be fined $2,500 for a first offense. Even if they mistakenly mislabel a worker, companies could still face $1,000 per violation, according to The Record.

Several states have already implemented misclassification fees. Employers should be aware of their state's laws and correctly and carefully classify workers.

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