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 7 th highest in wages 23 rd highest in premium rates 37 th 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 Gazette-mail, 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