Nancy Hicks, Lincoln Journal Star
March 18, 2010
The growing practice of calling employees independent contractors seems simple and harmless.
But in practice the misclassification hurts honest companies that can't compete with lower bids, and it robs the state of tax dollars, said Omaha Sen. Steve Lathrop, sponsor of a bill that would penalize construction and delivery service companies for misclassifying workers.
When workers are labeled independent contractors, the company does not withhold income taxes, doesn't paying unemployment taxes and doesn't pay overtime.
