Connect with us

State News

Governor Northam signs executive order establishing interagency task force on worker misclassification and payroll fraud

Published

on

Governor Ralph Northam

RICHMOND—Governor Ralph Northam today signed an Executive Order establishing an interagency task force on worker misclassification and payroll fraud. The misclassification of employees as “independent contractors” undermines businesses that follow the law, deprives the Commonwealth of millions of dollars in tax revenues, and prevents workers from receiving legal protections and benefits.

“Treating Virginia workers fairly is central to building an economy that works for everyone, no matter who you are or where you live,” said Governor Northam. “Every employer in the Commonwealth should be playing by the same rules and this task force will come up with a comprehensive plan to make sure workers aren’t missing out on the protections and benefits they would receive if properly classified.”

A 2012 report of the Joint Legislative Audit and Review Commission (JLARC) found that one-third of audited employers in certain industries misclassify their employees. By failing to purchase workers’ compensation insurance, pay unemployment insurance and payroll taxes, or comply with minimum wage and overtime laws, employers lower their costs as much as 40%, placing other employers at a competitive disadvantage.

The task force will develop and implement a comprehensive plan with measurable goals, including identifying ways to hold companies working on state contracts who commit payroll fraud through misclassification of workers accountable, and identifying ways to deter future inappropriate conduct by recommending enforcement mechanisms.

Secretary of Commerce and Trade Brian Ball will chair the task force. It will include representatives from the Virginia Employment Commission, the Department of General Services, the Department of Labor and Industry, the Department of Professional and Occupational Regulation, the State Corporation Commission’s Bureau of Insurance, the Department of Taxation, the Workers’ Compensation Commission, and the Office of the Attorney General.

The group will develop a work plan by November 1, 2018 and report to the Governor on its progress by August 1, 2019.

The full text of Executive Order Sixteen can be found here.

Front Royal, VA
66°
Showers in the Vicinity
6:37 am7:51 pm EDT
Feels like: 66°F
Wind: 0mph NNE
Humidity: 95%
Pressure: 29.97"Hg
UV index: 0
FriSatSun
86°F / 63°F
84°F / 66°F
90°F / 68°F
Interesting Things to Know32 minutes ago

Why More Robots Can Mean More Workplace Injuries

Local News17 hours ago

American Legion Post 53 Builds New Pavilion for Veterans and Community

Local News18 hours ago

Missing Bricks Led to Discovery of Structural Concerns at E. Wilson Morrison

State News22 hours ago

Spanberger Orders State Agencies to Prepare for Medicaid, SNAP Changes 

State News22 hours ago

Amazon Changes Course on Water Use for King George Data Center Campus

Local News23 hours ago

Tree Stewards Prepare for 30th Anniversary While Offering Community Tree Care Class

Opinion23 hours ago

Challenges and Future Uncertainties

Punditry & Prose23 hours ago

Our Young People Are a Reflection of Our Community

Historically Speaking24 hours ago

America 250: The Battle of Long Island

Food1 day ago

Pasta e Ceci: An Ancient Roman Comfort Dish Made Simple

Opinion1 day ago

How Soon Until We Have A Chinese-Style Surveillance State?

Local News2 days ago

Cline Accepts Three Debate Invitations in Sixth District Race

Local News2 days ago

Lloyd, Silek Spar Over WCRC Membership Payment Methods as August 27 Meeting & Officer Appointments Loom

Local News2 days ago

Warren County Sheriff’s Office Joins Saturation Saturday Ahead of Labor Day Weekend

Local Government2 days ago

A More Permanent Closure of a Portion of Church Street Denied at Town Council Meeting

Community Events2 days ago

Newtown Heritage Festival Rescheduled for Aug. 28-29 in Stephens City

National News2 days ago

Active Court Order Still Blocking Trump Effort to Restrict Vote-By-Mail

Obituaries2 days ago

Donald “Don” Alan Burke Jr. (1952 – 2026)

Local News2 days ago

Blue Ridge Wildlife Center Patient of the Week: Woodland Box Turtle

Local News2 days ago

Christendom Graduate Jimmy Coffey Sets Sights on Major League Rugby

Obituaries2 days ago

Helga Maria Hartmann (1933 – 2026)

Obituaries2 days ago

Rena Mae Frye Dodson (1939 – 2026)

Local News2 days ago

Love Revival, First Baptist Partner for Free Labor Day Community Cookout

State News2 days ago

Virginia Students Make Gains in Reading, Math as Schools Push Toward Pre-Pandemic Levels

Community Events2 days ago

This Week’s Showtimes at Royal Cinemas as of August 28th