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
82°
Cloudy
5:46 am8:37 pm EDT
Feels like: 90°F
Wind: 7mph SSW
Humidity: 73%
Pressure: 29.91"Hg
UV index: 4
ThuFriSat
95°F / 73°F
95°F / 66°F
90°F / 64°F
Community Events7 minutes ago

Front Royal Cardinals to Host Youth Baseball Camps at Bing Crosby Stadium

Community Events2 hours ago

Gazebo Gatherings Summer Concert Series Opens June 11 in Front Royal

State News3 hours ago

State Report Finds 13 Rural Hospitals Vulnerable to Closure 

Legislative Update3 hours ago

Kaine Introduces Legislation to Address Teacher Shortage, Equip New Educators

National News3 hours ago

Trump Launches New Strikes on Iran After US Army Helicopter Downed

Health3 hours ago

Treating Cataracts: The Good News Keeps Getting Better

Food4 hours ago

Cherry Mini-Clafoutis Offers a Simple Taste of Cherry Season

Health4 hours ago

Electric Scooters: Why You Should Always Wear a Helmet

Local News12 hours ago

Blue Ridge Wildlife Center Patient of the Week: Barred Owl

Local Government18 hours ago

Town Council Weighs Pros and Cons of Accommodating Special Events on Town Property

Historically Speaking21 hours ago

The Lee Resolution and the Road to Independence

Crime/Court1 day ago

State Police Seek Witnesses in Fatal I-95 Crash in Stafford County

report logo
Arrest Logs1 day ago

POLICE: 7 Day FRPD Arrest Report 6/8/2026

State News1 day ago

Judge Approves Settlement Over Rejected Virginia Student Voter Registrations

State News1 day ago

High-Potency Cannabis Fuels State Debates Over Psychosis and Addiction Risks

Interesting Things to Know1 day ago

Why Drills and Training Actually Save Lives

Interesting Things to Know1 day ago

Racket Sports Offer Fitness, Fun and Friendship

Home1 day ago

Where Is That Bad Smell in the House Coming From?

Local News2 days ago

American Legion Post 53 Brings Baseball Tradition Back to Front Royal

Local News2 days ago

First Baptist Church Celebrates 151 Years of Historic Bell

Local News2 days ago

Judge Weighs Future of Confederate-Linked School Names in Shenandoah County

Local News2 days ago

Commentary: In Light of Horrific Virginia Deaths, Consider Others When Behind the Wheel

National News2 days ago

Trump Administration Swiftly Moves Ahead on Plans to Restrict Voting by Mail in the States

National News2 days ago

Congress Weighs Cuts to States’ Already ‘Insufficient’ Election Security Dollars

Obituaries2 days ago

Judith Darlene Thompson (1952 – 2026)