Misclassification in Construction: The Original Gig Economy

Mark Erlich

ILR Review, 2021, vol. 74, issue 5, 1202-1230

Abstract: The misclassification of employees as independent contractors has been the focus of recent attention as a result of the implementation of that employment model by ride-share and other gig employers. But the practice long predates the emergence of the gig economy, particularly in the construction industry. This article traces the history of misclassification in construction and the subsequent emergence of a cash-based underground system of compensation, which have lowered standards and been among the major causes of the decline of union density in the industry. In addition, the author examines the regulatory environment at the federal level, which has largely enabled misclassification as well as attempts by state agencies to adopt more aggressive enforcement policies.

Keywords: construction industry; independent contractors; misclassification; labor regulations; union decline; gig economy; federal and state wage enforcement agencies (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:ilrrev:v:74:y:2021:i:5:p:1202-1230

DOI: 10.1177/0019793920972321

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