The Maryland Joint Enforcement Task Force on Workplace Fraud (JETF) has disclosed findings from its annual report detailing widespread worker misclassification and its detrimental impact on the state. The report from JETF highlights that in 2024, enforcement efforts led to the identification of over 5,500 misclassified workers and the discovery of approximately $36 million in unreported taxable wages from Unemployment Insurance audits.
Maryland Attorney General, Brown emphasized that misclassified workers are deprived of essential benefits such as unemployment benefits, workers’ compensation, and minimum wage protections. “This not only disadvantages the victims and compliant businesses but also results in lost tax revenue crucial for the state,” Brown stated.
Secretary of Labor and Taskforce Chair, Portia Wu, pointed out that workplace fraud undermines the state’s efforts to foster quality job creation and middle-class growth. She stressed the importance of combating these fraudulent practices to ensure equitable economic opportunities for all Marylanders.
Comptroller Brooke E. Lierman echoed this sentiment, expressing alarm over the prevalent unethical business practices and reaffirmed her commitment to pursuing those who evade workplace laws, thus harming workers and state resources.
The task force, reestablished in January 2024 by Governor Wes Moore, is a collaboration among various state agencies aimed at bolstering the enforcement of workplace laws and safeguarding worker rights.
For further details or to report misclassification issues, workers can reach out to the Division of Labor & Industry at workrights@maryland.gov. The full report can be accessed through the Maryland Department of Labor’s website.
