The Spread and Cost of Misclassification

​

• A U.S. Department of Labor Study in 2000 found that throughout the 1990s, nearly $200 million in Unemployment Insurance (UI) tax revenue was lost each year due to misclassification

• In 1984, an Internal Revenue Service study revealed 15% of employers misclassified 3.4 million workers.

• In 2009, the U.S. Government Accountability Office used the 1984 study to determine that $2.72 billion were lost due to independent contractor misclassification in 2006.

• A New York State Task Force found that misclassification costs the state $4.8 million in 2008.

• In 2014 New York’s Joint Employment Task Force on Employee Misclassification identified 24,000 instances of employee misclassification.  

  • Of those 24,000 misclassified workers, there was a combined total of $333.4 million in unreported wages & $12.2 million in UI.

• Between 2000 & 2007, misclassification increased from 106,000 to 150,000 workers, determined by state audits.

 

Actions by the Sovereign Stylist

​

• The Sovereign Stylist has advised 911 Individuals since 2018.

• We have helped 15% report their possible misclassification to the Internal Revenue Service and the U.S. Department of Labor.

• The Sovereign Stylist is a registered 501(c)(3) nonprofit entity.

 

Our Community Demographics

​

• The Sovereign Stylist has 22,000+ members in its Facebook Group.

• The group is 97% Female.

• 34% of the group is 25-34 years old.

• 31% of the group is 35-44 years old.

• The group averages 10,000 active members per day.

• The group is mainly comprised of Hairstylists and Salon Owners.