A Connecticut Department of Labor press release says a three-month-long enforcement effort has resulted in 27 stop-work orders on job sites throughout the state, the Stamford Times reports ("Dept. of Labor issues stop work orders to Stamford companies," by Korey Wilson). "Stop work orders are levied against companies that misclassify workers as independent contractors with the intent of avoiding their obligations under federal and state employment laws covering such matters as workers' compensation, unemployment taxes and payroll reporting," the agency said.
The announcement reflects a routine enforcement policy in Connecticut: the Department of Labor has issued similar press releases each month in 2013, and on multiple occasions in 2012. "Although misclassification can happen inadvertently, it is more often used to circumvent the law," says a "frequently asked questions" page at the Department of Labor website ("Worker/Employee Misclassification FAQs"). The "FAQ" page offers information on how the state distinguishes between employees and independent contract workers for purposes of taxes and insurance requirements, but the page notes: "Determination of a worker's status is often complex. Connecticut agencies use different rules and tests to determine employment status as different agencies are responsible for separate aspects of law."