N.Y. Labor Law § 861-a: Legislative findings and intent

§ 861-a. Legislative findings and intent. The legislature hereby finds

and declares that New York state's construction industry is experiencing

dangerous levels of employee misclassification fraud. Unscrupulous

employers are intentionally reporting employees as independent

contractors to state and federal authorities or workers' compensation

carriers in record numbers. In addition, there has been an explosion of

employers who operate in the underground economy and fail to report all

or a sizable portion of their workers.

The legislature hereby finds and declares that recent studies of New

York city's construction industry alone suggests that as many as fifty

thousand New York city construction workers -- nearly one in four -- are

either misclassified as independent contractors or are employed by

construction contractors completely off the books. Construction industry

fraud reduces government revenue, shifts tax and workers' compensation

insurance costs to law-abiding employees, lowers working conditions and

steals jobs from legitimate employers and their employees.

Therefore, the legislature hereby finds and declares that government

has an obligation to curb this underground economy, enforce

long-standing employment laws, ensure compliance with essential social

insurance protections and eliminate the unfair competitive advantage

from contractors in the underground economy by and through the enactment

of the New York state construction industry fair play act.