Dem bill targets misclassification of workers

Democrats are looking to protect low-wage workers who are misclassified as independent contractors so their companies don’t have to pay them as much.

The issue of misclassified workers — who are often denied minimum wage, overtime pay and other benefits offered to full-time employees — is part of a larger debate over income inequality.

The Labor Department is making strides to combat what it sees as a growing trend of misclassified workers, and now congressional Democrats are getting involved.

The Payroll Fraud Prevention Act, introduced Wednesday by Rep. Frederica WilsonFrederica Patricia WilsonTrump, Obamas and Clintons among leaders mourning Aretha Franklin Clyburn rips Trump over Omarosa 'dog' comment: 'I don’t know of anything that has been more troubling to me' Dem lawmaker calls Trump racist in response to 'dog' comment MORE (D-Fla.) just before the House left for recess, would penalize employers that misclassify workers and violate long-standing labor laws.

"Misclassification cheats hard-working Americans out of federally guaranteed labor rights and benefits, such as overtime pay, minimum wage, and family and medical leave,” Wilson said.

Sen. Bob CaseyRobert (Bob) Patrick CaseyObama to hit campaign trail in Pa. for gubernatorial, Senate candidates Trump is wrong, Dems are fighting to save Medicare and Social Security Five biggest surprises in midterm fight MORE Jr. (D-Pa.) is introducing identical legislation in the upper chamber to combat the misclassification of workers.

The legislation would encourage companies to classify more workers as employees rather than independent contractors.

Companies would be required to notify workers of their classification in writing, and "when an employer fails to provide proper written notice of classification to any employee or non-employee, the worker is considered an employee."

The legislation would also include provisions for misclassified workers to recover lost wages.

"We owe workers a fair shot at good job where they can receive basic workplace protections,” Casey said. "Too many workers are classified as independent contractors when it's clear that they are employees."