Mainstream Home Improvement Takes Pro-Active Steps in Employee Classification

Mainstream Home Improvement has voluntarily complied with independent contractor reform recommendations presented to Iowa governor Chet Culver on December 30, 2008.

The Worker Misclassification Task Force was charged with studying the effects of worker misclassification on contractor businesses in the state of Iowa and preparing a list of recommendations for the governor's approval.

Employee misclassification is a common problem in contractor based businesses such as construction and home renovation. By misclassifying employees as independent contractors, dishonest contractors are able to greatly reduce their payroll tax costs and under-bid honest businesses.

According to the task force, the practice of employee misclassification creates unfair business conditions in the state of Iowa and ultimately has a negative effect on the state's economy. By avoiding payroll taxes, contractors who misclassify employees deprive the state government of tax revenue for vital programs-an especially critical issue as the tax base shrinks due to other economic setbacks.

Employee misclassification is also unfair to Iowa's workforce, as misclassified employees are denied the protection of several state and federal labor laws, including rules governing overtime, unemployment insurance, worker's compensation for injuries, and even a guaranteed minimum wage.

As a responsible Quad Cities' business, Mainstream Home Improvement took active steps to voluntarily ensure that all employees are classified correctly, in accordance with the recommendations made to the governor.

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