Researchers Warn Construction Firms Avoid Misclassification Penalties by Changing Names

Some construction companies that face penalties for misclassifying workers avoid paying by shutting down and opening new corporate entities under different names, according to a study from the University of Massachusetts Amherst's Labor Center. The study, published Monday, outlines the practices of five subcontractors that have worked with the national house-building company Pulte Homes in Worcester and Framingham, Massachusetts. State regulators fined the subcontractors $490,000 for wage theft and other violations, but according to the researchers many of the subcontractors avo...