New York Employees, Contractors and Subcontractors are Covered by the Construction Industry Fair Play Act
It is against the law for New York employers to misclassify employees as independent contractors or pay employees off-the-books under the new Construction Industry Fair Play Act. Studies were conducted showing that approximately 15 to 25 percent of construction workers in New York State may be misclassified. Employee misclassification occurs when employers consider individual workers as independent contractors when they should actually be treated as employees or they do not report these workers altogether, a term commonly referred to as paying “off-the-books.”
Under this new labor law individuals working for an employer are employees unless they meet all of the following criteria listed. The individual must be:
- Free from control and direction in performing their job, both when under a contract and in the practical performance of assigned tasks
- Performing services outside of the usual course of business for the company, and
- Engaged in an independently established trade, occupation or business that is similar to services performed.
In addition to posting requirements there are civil and criminal penalties for employers who fail to properly classify employees. Construction industry employers must post the official Fair Play Act notices in a prominent and accessible place on the job site, which are available at Compliance Poster Company, in both English and Spanish. Please visit us at www.complianceposter.com for details.