(Raleigh News Observer) North Carolina’s leaders – and those campaigning to take charge in the coming year – promised Wednesday to wake a sleeping government in order to stop businesses that misclassify employees as contractors and avoid paying taxes and buying workers’ compensation insurance.
Gov. Bev Perdue ordered a team of agency leaders to meet and figure out how to work together to crack down on cheating businesses. Both men campaigning to be governor – Republican Pat McCrory and Democrat Walter Dalton – said fixing these problems is at the top of their priority list.
The commitments follow a three-part series in The News & Observer highlighting how honest business owners are losing their foothold as they compete against businesses that break the law to avoid taxes and insurance.
The practices are prevalent in the construction industry and have seeped into other fields. Some employers are treating their laborers as independent contractors instead of direct employees to avoid paying Social Security, unemployment tax, overtime and workers’ compensation.
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