Unchecked Injuries Underground
Jobs created in construction boost workers’ comp insurer premium volume more than employment created by most industries. Construction jobs are also a significant source injury claims. But a growing number of construction jobs are not reported by certain employers or their workers are misclassified as independent contractors, according to a report recently released by the Economic Roundtable, a non-profit research entity.
Unreported and misclassified construction jobs cheated California’s workers’ comp system out of $264 million during 2011, according to the report titled “Sinking Underground: The Growing Informal Economy In California Construction
The graph above shows that California’s informal employment in construction, comprised of misclassified and underreported jobs in an underground economy, has grown by 400 percent over 40 years.
The report is available here.