supporting a bill to stop employers from improperly misclassifying
workers as independent contractors, but urged Ritter to show support
for other pro-worker legislation.
"We are pleased Gov. Ritter today signed HB 1310 into law, which puts
an end to the egregious practice of classifying workers as independent
contractors when they really are full-time workers and deserve
benefits," said Steve Vairma, Secretary-Treasurer of Local 455. "We
hope the governor will continue to support other laws that benefit the
workers of this great state."
In particular, the Teamsters are urging Ritter to show support for a
bill that would give firefighters the right to unionize without
getting local approval. The bill will become law on Friday unless
Ritter decides to veto it.
"Like the employee misclassification law, the bill making it easier
for firefighters to unionize shows that Colorado is a pro-worker
state," Vairma said. "We hope the governor will continue the good work
of our state lawmakers and let this bill become law."
Employee misclassification is an issue being waged in statehouses
across the country and on the federal level. By misclassifying workers
as independent contractors, companies avoid paying withholding income
taxes and paying Social Security and Medicare taxes.
Each year, more than $4.7 billion in federal income and employment tax
revenue is lost due to misclassification and billions more are lost at
the state level.
Companies that misclassify their workers save up to an estimated 30
percent on payroll costs, gaining an unfair advantage over their more
responsible competitors. Irresponsible companies meanwhile are
subsidized by law-abiding employers in the form of health insurance
premiums.
Workers misclassified as independent contractors receive no protection
from workplace health and safety laws, no legal rights to equal
opportunity in the workplace, no rights to job-protected family and
medical leave and no rights or organize and collectively bargain.
Under Colorado's law, the Department of Labor and Employment's
Division of Employment and Training is responsible for investigating
employers who misclassify workers.
Employers who misclassify workers could face fines of up to $5,000 per
misclassified employee, and up to $25,000 per misclassified employee
for subsequent offenses. If employers are found to have knowingly
misclassified workers more than once, they can be prohibited from
bidding on state contracts for up to two years.
