TV Station: Despite Crackdown, Misclassification by Contractors Still Widespread

Friday, February 19, 2016 | 0

The Tennessee Bureau of Workers' Compensation has cracked down on misclassification in the construction industry, but the practice is still widespread, according to a report by WBRC Fox 6 News in Nashville.

According to the report, Nashville is experiencing a boom in construction activity that has kept compliance inspectors busy. Scott Yarbrough, workers' compensation compliance manager, told the television station that his inspectors find violations almost every time they are in the field.

Some examples:

• Subcontractor Pablo Delgado was fined more than $87,000 for understating his payroll on an apartment complex project in Bellevue.
• At another Bellevue complex, Aguilar Carpentry was caught misclassifying workers and fined $73,000.
• Investigators levied a $39,000 fine on a contractor working on an unidentified Vanderbilt University dormitory project.

WBRC said that offenders are given 24 months to pay the fines, and much of the money is still uncollected. For example, Aguilar Carpentry has paid only $5,000 of the $73,000 it owes.

The television station reported that state officials did not start inspecting for misclassification violations until 2013.

“The main thing we want to see is people coming back into compliance,” Yarbrough said. “We don’t necessarily want to run them out of business. We want to give them an opportunity to pay over time.”