HARTFORD - A state commission seeks to increase penalties against companies that misclassify employees as independent contractors. The Joint Enforcement Commission on Worker Misclassification has proposed a $300-per-day fine for each violation. A harsher penalty is needed because misclassification causes "devastating harm to taxpayers, workers and honest businesses," according to Attorney General Richard Blumenthal, co-chair of the commission.
"Calling workers independent contractors when they are really employees costs workers benefits, taxpayers revenue and honest businesses a fair opportunity to compete for work," said Blumenthal. "Misclassification is cheating, plain and simple, that has devastating economic impacts." The penalty currently is $300 per violation, which Blumenthal characterized as "inadequate and ineffective."