Fraud is a challenge and concern for companies in virtually every industry. Protecting company assets and resources from dishonest vendors, employees and others are the aim of every fraud prevention policy. Unfortunately for constriction companies the incidents and cost of fraud appear to be rising as detailed in our recent blog post. The problem impacts industry companies both globally and locally. In fact, last month Governor John Hickenlooper signed an executive order to create a task force to investigate and make improvements to both payroll fraud and employee misclassification in the Colorado construction industry. The group will be called the Joint Enforcement Task Force on Payroll Fraud and Employee Misclassification in The Construction Industry. Their role will be to coordinate with state agencies, businesses, labor and community groups to address these issues and will also be responsible for streamlining investigations around alleged misconduct.
The members of the Task Force will include various state agencies such as leadership from the Colorado Department of Labor and Employment, Colorado Department of Revenue, Colorado Department of Regulatory Agencies and Colorado Department of Personnel and Administration. Other members will be drawn from the Associated General Contractors of Colorado and Southwest Regional Council of Carpenters.
It’s clear the issue of fraud and worker misclassification is an issue that Colorado is aggressively pursuing. For this reason, it’s important to review your worker classification and payroll policies to ensure you have properly classified workers and essential protective measures are in place. If you have questions about fraud prevention, worker classification or need assistance with an audit or tax issue, Hanson & CO can help. For additional information please call us at 303-388-1010 or click here to contact us. We look forward to speaking with you soon.