Collaborative in approach, participation in the Task Force has grown from nine member agencies to 17 plus state agencies, including representatives from multiple constitutional offices. Task Force partners share information, and come together with a common purpose: to bring businesses and individuals into compliance with applicable state labor, licensing and tax laws.
To date, the Task Force has recovered nearly $1.5M in revenue that otherwise would have gone unpaid or uncollected. Additionally, more than 400 investigations have commenced as a result of Task Force referrals. The Task Force has received over 500 calls to its toll-free free referral line, 1-877-96-LABOR from businesses and individuals seeking information or to lodge complaints about suspected cases of fraud and misclassification.
Costs of the Underground Economy
Why tackle the underground economy? The underground economy and worker misclassification is not a new phenomenon or one which exists just in Massachusetts.
Most businesses are law-abiding and responsible, treat their employees fairly, and stand behind the goods and services they sell. These legitimate businesses often wind up paying higher costs when other businesses evade the law. Businesses in the underground economy pay workers sub-minimum wage or "off the books", illegally misclassifying their employees to avoid paying for unemployment or workers' compensation insurance and refusing to withhold taxes.
When the underground economy is allowed to flourish, workers are denied basic workplace rights and protections, legitimate businesses find they cannot compete and must shut down, consumers are subject to unregulated goods and unlicensed services and Massachusetts is cheated out of revenue that could otherwise fund worthy programs and services.
Under the directive of the Governor's Executive Order, the Task Force is chaired by the Executive Office of Labor and Workforce Development's Director of Labor, George Noel - "Workplace fraud and misclassification impacts businesses and workers in every industry and poses serious consequences. I am proud of what this Task Force has accomplished and honored to serve as its chair," said Director Noel.
The Task Force consists of:
Executive Office of Labor and Workforce Development
Department of Industrial Accidents
Department of Labor Standards
Department of Unemployment Assistance
Division of Apprentice Training
Department of Career Services
Executive Office of Administration and Finance
Executive Office of Health and Human Services
Executive Office of Housing and Economic Development
Department of Housing and Community Development
Division of Professional Licensure
Office of Small Business and Entrepreneurship
State Office of Minority and Women Business Assistance
Executive Office of Public Safety and Security
Office of the Attorney General
Office of the Treasurer
For additional information about the Task Force and to read the Task Force Annual Report, visit www.mass.gov/dol/labortaskforce.
The Task Force consists of representatives of several agencies including: