Virginia Is for Compliers: Easier to Fight Misclassification, Subcontracting Violators

 by Chaz Bolte

Chaz Bolte

Chaz Bolte

Virginia’s penalties for misclassifying workers in order to avoid paying insurance costs got a boost this month thanks to a new law.  The Virginia Workers Compensation Act made it easier for the state to take action against violators, according to Virginia Workplace Law:

The civil penalty is now up to $250 per day for each day of noncompliance, subject to a maximum penalty of $50,000, plus collection costs.”  The VWCA requires every business owner with more than two employees (a part-time worker is counted as one employee) to have coverage for such worker.

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New Report: Port Trucking Companies Steal More Than $1 Billion in Wages From Drivers

by Sarah Jaffe

Jaffe_Port_Truckers_Misclassification_250_250

A Savannah port truck driver protests for employee status at a port worker strike in Los Angeles last year.

“Everyone that’s involved in container hauling is making money,” says Albert Dantes, a port truck driver at the Port of Savannah, Georgia. Everyone, that is, but Dantes and his colleagues, who spoke to me after an organizing meeting just off the highway on which they haul the goods that come in and out of the fourth-largest container port in the country.

The port brings in close to $16 billion per year, but the drivers only see a tiny bit of that money. This is in large part because they’re “misclassified” as independent contractors, driver Gerald Spaulding says—which lets the bosses at the various port trucking companies push off operating costs onto the drivers. These may include gas, repairs and the lease or payment for the truck itself. “All the expenses come out of your pocket,” says Dantes, noting that the gas cost alone per load is usually about half of what the driver is paid for the load. “If you lose a tire, you pay for it. [And] you just ran for free.”

A new report, The Big Rig Overhaul: Restoring Middle Class Jobs at America’s Ports Through Labor Law Enforcement, published by the National Employment Law Project, Change to Win Strategic Organizing Center and the Los Angeles Alliance for a New Economy, backs up what the drivers are saying. It estimates that some 49,000 of the country’s 75,000 port truckers are wrongly classified as independent contractors, and it calculates that that misclassification costs state and federal governments more than $563 million in lost tax revenue, and costs drivers in the state of California alone between $787 to $998 million in stolen wages. Continue reading