Whitmer changes contracting rules to target payroll fraud

Michigan

LANSING, Mich. (AP) — Gov. Gretchen Whitmer has announced changes in Michigan’s contracting process to ensure construction and other companies aren’t rewarded with government money for payroll fraud such as misclassifying workers as independent contractors.

The move is designed to implement a “Michigan Jobs First” directive the Democratic governor issued in July 2019.

The state will require businesses to disclose their labor and environmental compliance record, their economic impact in the state and to certify they have properly classified employees.

The Democratic governor says the misclassification of workers as independent contractors “deprives employees of critical benefits like overtime pay, workers’ comp and health care.”

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