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Department details misclassification, wage-theft audits; lawmakers press for stronger penalties and more enforcement resources
Summary
Department auditors reported thousands of audits and millions recovered in unpaid wages and taxes; lawmakers urged stronger penalties and more staff to pursue misclassification and wage theft. The department said it completed thousands of investigations with a relatively small enforcement complement.
Department of Labor and Industry officials told the committee they are pursuing misclassification and wage-theft cases but said enforcement resources remain limited compared with the scale of alleged violations described by lawmakers.
The department's Unemployment Compensation Tax Review Office conducted 4,658 audits on roughly $3.7 billion in payroll and identified 22,262 misclassified or unreported workers, resulting in about $6.7 million in unpaid UC tax liabilities uncovered, testimony said. The department…
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