The Wisconsin Department of Workforce Development (DWD) has released the 2022 Joint Taskforce on Worker Misclassification and Payroll Fraud report, which summarizes the task force’s activities throughout 2021 and includes multiple recommendations to strengthen Wisconsin’s ability to combat these forms of fraud.
The task force was created by Governor Evers on April 15, 2019, to evaluate current law and potential options, whether through change to statute or administrative rule, that will help prevent worker misclassification and protect thousands of workers while also leveling the playing field for businesses that follow the law.
The report included the following recommendations:
- Direct agencies to continue to investigate and work with the Department of Justice to prosecute violations of misclassification laws, such as Wis. Stat. § 108.24(2) and (2m). Require the Department of Justice to make the names of the businesses prosecuted public.
- Amend Wis. Stat. ch. 183 to require the disclosure of all members and managers of domestic and foreign Limited Liability Companies (LLCs) at organization or registration and in annual reports.
- Amend Wis. Stat. ch. 183 to include a false filings provision and penalty.
- Amend Wis. Stat. ch. 183 to provide for limited enforcement authority by DFI to investigate and refer violations to the Attorney General to enjoin LLC.
- Direct the Department of Revenue and Department of Workforce Development to create and adopt a unified worker classification questionnaire.
DWD Secretary-designee Amy Pechacek also announced that the work of the task force has concluded with the issuance of the report.
For more information on the work of the Joint Enforcement Task Force on Worker Misclassification and Payroll Fraud please visit the Joint Enforcement Task Force on Payroll Fraud and Worker Misclassification website.