1. Workers’ Compensation Misclassification
Laborers’ International Union of North America
Construction Department

2. Missouri Contractors’ Credit Premium Adjustment Program (Construction only)

3. Illinois Workers’ Compensation Statistics
7th highest in wages
23rd highest in premium rates
37th highest in injury rates
Source: 2004 Annual Report

4. The Labor Ready Story
Information was obtained from the monopolistic States of
Ohio
West Virginia
Washington

5. Ohio Labor Ready construction workforce misclassified as:
Retail store employees: 10.2%
Clerical office employees: 8.8%

6. Washington Labor Ready construction workforce misclassified as:
Office services employees: 47%

7. West Virginia Labor Ready construction workforce misclassified as:
Miscellaneous repair and maintenance (includes piano tuning, taxidermists, chain saw repair, lawn mower repair, firearm repair)

8. West Virginia Piano Tuners or Construction Workers
Larry Richards dispatched by Labor Ready to 126 construction/landscaping projects
99 times classified as a taxidermist/ piano tuner at $1.11 per $100 of payroll
Construction trades workers’ compensation rate is minimum $10 per $100 of payroll.
Source: The Sunday Gazett , Charleston, WV

9. Economic Impact of Misclassification in Ohio

10. Economic Impact of Misclassification in Washington

11. Economic Impact of Misclassification in West Virginia
*includes piano tuning, taxidermists, chain saw repair, lawn mower repair, firearm repair

12. Misclassification Example
The Tenth Diamond Inc. and Astech Corp. are both owned by the same owner in Charleston, WV
Tenth Diamond, Inc. is classified as General Construction contractor paying $9 per $100 of payroll
Astech Corp. is classified as Asbestos Removal contractor paying $48 per 100 of payroll, but has no employees
Astech leased all employees from Tenth Diamond, Inc.
The State of WV claims that Astech/Tenth Diamond owes the state $800,000 in workers’ compensation premiums.

13. NCCI Manual Premium Rates

14. NCCI Manual Premium Rates Effects of Misclassification

15. Conclusion
Workers’ Compensation Misclassification costs legitimate contractors, jobs.
States and insurance companies need more enforcement and penalties.

16. Workers’ Compensation Misclassification
Laborers’ International Union of North America
Construction Department