Maryland’s Joint Enforcement Task Force on Workplace Fraud (JETF) has released a new annual report, revealing the magnitude of worker misclassification in Maryland. Misclassified workers lose out on critical workplace protections, including access to unemployment benefits, workers’ compensation, health insurance coverage, minimum wage, and overtime pay, and workplace fraud also causes significant harm to employers and the state.
Collectively, in 2024, Task Force agencies discovered over 5,500 misclassified workers through their enforcement actions.
Over $36 million in unreported taxable wages were uncovered through 2024 Unemployment Insurance audits. The report dives into specific occupations to reveal the scale of the problem.
Through the voices of workers and business owners, the report details how workplace fraud not only deprives workers of basic protections, but can also put law-abiding businesses at a disadvantage. This happens when competitors reduce their labor costs through misclassification, which shifts those costs to workers, to taxpayers, and to society at large.
Required taxes may also go unpaid, which lowers state revenue and impacts funding to pay for critical public services.
“Workplace fraud hurts Maryland’s ability to create quality jobs and grow the middle class,” says Maryland Secretary of Labor and Task Force Chair Portia Wu. “Combatting workplace fraud is critical to ensuring that pathways to work, wages, and wealth are available to all Marylanders.”
The Task Force on Workplace Fraud is dedicated to strengthening investigations and enforcement of laws regarding workplace fraud through coordinating data sharing and enforcement work across multiple Maryland state agencies.
Restarted by Governor Wes Moore in January 2024, the nine-member group is chaired by Secretary Wu and includes Maryland Attorney General Anthony G. Brown and Comptroller Brooke E. Lierman.
“Misclassifying workers is not an acceptable business practice and it is alarming to see the rate at which some employers are engaged in this egregious behavior,” Comptroller Lierman said.
“Hardworking Marylanders should be paid what they are owed and given the benefits to which they are entitled,” said Attorney General Brown, JETF member.
The Taskforce report includes several possible areas of action to address workplace fraud. Some are broad, such as increasing education and outreach to workers and businesses about their responsibilities and rights under the Workplace Fraud Act.
The report is available on the Maryland Department of Labor website at https://labor.maryland.gov/workplacefraudtaskforce/
Report issues
If you believe that the person or business for whom you work has incorrectly classified you as an independent contractor, you can file a report (complaint) directly with the Joint Enforcement Task Force. Agencies associated with the Task Force will review your complaint and reach out to you accordingly.
Submit your report by email to DLDLIWorker [email protected]. Include the following contact information in the body of the email:
• First name (optional)
• Last name (optional)
• Phone number
• Email address
Also state if you are a worker or a third-party reporter. If you are a third-party reporter submitting on behalf of someone, indicate your relationship with that individual.
Describe the situation and concerns leading to your complaint in up to 1000 words and attach any supporting documentation.