Nearly 10% of state’s workforce misclassified as independent contractors

Workers in low-paying industries such as transportation, construction, retailing and nail salons who are classified as independent contractors in New York get paid 30 percent less than payroll workers and are often excluded from other benefits and insurance, a study from the Center for New York City Affairs, a policy research institute at The New School shows.

The report estimates that 873,000 workers statewide are misclassified as independent contractors, nearly 10 percent of the state’s entire workforce. One in five misclassified workers is working a “gig job” with app-based companies such as for rideshare and food delivery, industries that grew rapidly during the pandemic, which sped up the deterioration of payroll employment and increased gig work, the report notes.