By Mike Hill / Business Editor
Jul 29 2018
The state is cracking down on companies that are misclassifying workers to avoid paying federal government taxes, the Louisiana Workforce Commisson says.
Since July 1, 2017, state field auditors have completed nearly 1,000 audits of companies, uncovering more than 3,300 misclassified workers, the commission said in a news release.
“The 3,300 misclassified workers resulted in more than $11 million in unreported taxable wages and hundreds of thousands of dollars in unpaid unemployment taxes,” LWC Secretary Ava Dejoie said. “This practice creates a financial disadvantage to those companies that are complying with employment and payroll laws.”
The agency has conducted unannounced site inspections, particularly in the New Orleans area.
“Unannounced site inspections will continue until the unfair business practice of misclassifying workers stops,” Dejoie said. “Our message is clear – misclassifying workers will not be tolerated in our state.”