What is misclassification?
Misclassification occurs when a contractor pays a worker a rate that is not the correct rate for the work performed. For example, if an electrical contractor pays its Electricians the rate of pay of a lower paid Laborer and classifies the workers as laborers, but the work is electrician work, the workers have been misclassified. The contractor has failed to pay the correct prevailing wage rate for the work performed.
