DOL Targets Shale Gas Subcontractors over Pay Practices

The U.S. Department of Labor (DOL) is targeting the shale gas drilling industry in northeastern Pennsylvania for enforcement actions. The specific issue they are targeting is subcontractors who DOL claims are intentionally misclassifying workers as independent contractors (“1099”) instead of as regular employees (“W2”). By doing so, DOL claims employers are skirting tax withholdings and payment of workers’ compensation and workers are denied benefits like paid holidays, family leave and overtime pay.

What evidence of this “widespread problem” has the DOL hot-and-bothered enough to launch a full-out attack on small businesses in PA? A study—with suspect data.

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