Cracking down on employee misclassification:
Gov. Pat McCrory took surprise action on Dec. 18 by signing an executive order to target one persistent business practice that experts said is putting a drag on the economy: worker “misclassification” fraud, which illegally takes a company’s workers off the books and calls them independent contractors.
McCrory’s action was stimulated, in part, by a series of articles published in September 2014 by The News & Observer of Raleigh and The Charlotte Observer titled “Contract to Cheat,” which revealed that the state loses $467 million a year in lost tax payments from the construction industry alone, while workers are not protected by workers’ compensation or unemployment benefits.
Not unlike that Martin Shkreli situation, who was just fine ripping off AIDs patients but got locked up for ripping off the wealthy. In this case, the misclassification thing didn't become a problem until McCrory realized the lost government revenues might jeopardize the GOP's tax cuts for the wealthy. Whatever the motivations, it's a growing problem that needs to be fixed, so have at it.
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