"Misclassification" of workers takes place when an employer inappropriately classifies his or her employees as independent contractors in order to illegally avoid their obligations to the worker and to New York State. Recent studies by Cornell University and a government task force have estimated that misclassification resulted in more than $19 million in unreported wages and $175,674,161 in unemployment tax deficiencies between 2002 and 2005 alone. This illegal practice negates employee rights to unemployment benefits and workers' compensation, results in administrative burdens for state departments, places law-abiding businesses at a competitive disadvantage, and costs businesses and taxpayers millions of dollars on an annual basis. Assembly bill 8237-A (John) seeks to remedy this situation by granting workers employee status by default unless their employee can prove otherwise. While this bill seeks to remedy misclassification in the construction field, this problem exists across all industries. The Labor Committee seeks testimony to determine the extent of and cost of this practice to businesses, employees and taxpayers.

Witnesses are asked to keep oral testimony to no more than ten minutes in length. Written testimony will also be accepted and may be sent to the contact person listed on the reply form. In preparing the order of witnesses, the Committee will attempt to accommodate individual requests to speak at particular times in view of special circumstances. If you are testifying, please submit ten copies of any prepared testimony at the hearing registration desk.

In order to meet the needs of those who may have a disability, the New York State Assembly has made its facilities and services available to all individuals with disabilities. Accommodation will be provided for individuals with disabilities, upon reasonable request, to afford such individuals access and admission to Senate and Assembly facilities and activities

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Persons wishing to present testimony at the public hearing on employee misclassification on January 27th are requested to complete this reply form as soon as possible and mail, e-mail or fax it to: