[Congressional Record Volume 154, Number 86 (Friday, May 23, 2008)]
[Extensions of Remarks]
[Page E1049]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 INTRODUCTION OF THE EMPLOYEE MISCLASSIFICATION PREVENTION ACT OF 2008

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                         HON. ROBERT E. ANDREWS

                             of new jersey

                    in the house of representatives

                        Wednesday, May 21, 2008

  Mr. ANDREWS. Madam Speaker, along with my colleagues Congresswoman 
Lynn Woolsey, Chairman George Miller, Congressman Mike Michaud, 
Congressman McDermott and almost all of the Democratic Members of the 
Committee on Education and Labor, I rise today to introduce the 
Employee Misclassification Prevention Act of 2008, EMPA.
  The egregious practice of misclassifying workers as independent 
contractors needs to end. EMPA is pro-employee, pro-employer and pro-
taxpayer. The bill will protect employee benefits, remove incentives 
for employers to misclassify their workers, and ensure that bad 
employers don't line their own pockets with unpaid payroll taxes.
  In the last decade we have seen a questionable increase in the amount 
of individuals classified as independent contractors. In 1984, which 
was the last time a comprehensive misclassification study was conducted 
by an oversight agency on this issue, the Internal Revenue Service 
(IRS) estimated that 15 percent of employers misclassified 3.4 million 
workers as independent contractors. As a result, $1.6 billion or $2.72 
billion in inflation-adjusted 2006 dollars in Social Security, 
unemployment and income taxes was stripped from the hands of the 
Government and went into the pockets of tax evaders. Furthermore, the 
3.4 million workers who were misclassifed were stripped of many of 
their basic, but essential, employee rights.
  In some cases, classifying an individual as an independent contractor 
is quite right and quite appropriate. If someone is retained for a 
limited purpose, usually for a limited time, to do a specific job 
function for an employer, it is quite necessary and appropriate that 
that person not be treated as an employee for reasons of flexibility, 
and for reasons of fair compensation.
  However, when an individual is considered an independent contractor 
by their employer, but is told what to do. has no discretion over how 
to conduct the affairs of the business, and whose compensation is fixed 
and set by the employer, it is our duty as Members of Congress to 
protect this employee's rights under Federal law.
  There are millions of workers, who mow lawns, drive trucks, work in 
garment linen factories, and serve food in restaurants that I would 
consider an employee; nonetheless, these hardworking individuals are 
exploited and misclassified by their employers seeking to evade paying 
taxes. If any American worker is told what to do, when to do it, how 
much money they are going to make, what the work rules are, what they 
can and cannot do by their employer then the law should require they be 
classified as an employee and receive all of the benefits of the 40-
hour work week, as well as worker safety protections, pension and 
healthcare protections and other worker protections provided to them 
under Federal law.
  I encourage everyone to join me, my cosponsoring colleagues, as well 
as the AFL-CIO. Change to Win, United Brotherhood of Carpenters, 
International Brotherhood of Teamsters, the Laborers International, 
UNITE HERE, the National Employment Law Project, and others and support 
EMPA to protect workers across the country from employers who are only 
interested in making a profit for themselves at the expense of the 
American workers and taxpayer.

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