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Misclassification in Construction: The Original Gig Economy

Author

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  • Mark Erlich

Abstract

The misclassification of employees as independent contractors has been the focus of recent attention as a result of the implementation of that employment model by ride-share and other gig employers. But the practice long predates the emergence of the gig economy, particularly in the construction industry. This article traces the history of misclassification in construction and the subsequent emergence of a cash-based underground system of compensation, which have lowered standards and been among the major causes of the decline of union density in the industry. In addition, the author examines the regulatory environment at the federal level, which has largely enabled misclassification as well as attempts by state agencies to adopt more aggressive enforcement policies.

Suggested Citation

  • Mark Erlich, 2021. "Misclassification in Construction: The Original Gig Economy," ILR Review, Cornell University, ILR School, vol. 74(5), pages 1202-1230, October.
    • Handle: RePEc:sae:ilrrev:v:74:y:2021:i:5:p:1202-1230
    DOI: 10.1177/0019793920972321
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    References listed on IDEAS

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    1. Janice Fine & Jennifer Gordon, 2010. "Strengthening Labor Standards Enforcement through Partnerships with Workers’ Organizations," Politics & Society, , vol. 38(4), pages 552-585, December.
    2. Steven G. Allen, 1994. "Developments in Collective Bargaining in Construction in the 1980s and 1990s," NBER Working Papers 4674, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Janice Fine & Michael Piore, 2021. "Introduction to a Special Issue on the New Labor Federalism," ILR Review, Cornell University, ILR School, vol. 74(5), pages 1085-1102, October.
    2. Matthew Hinkel & Dale Belman, 2022. "Should prevailing wages prevail? Re‐examining the effect of prevailing wage laws on affordable housing construction costs," British Journal of Industrial Relations, London School of Economics, vol. 60(4), pages 761-783, December.

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