Legal contractors losing out

The state is stepping up enforcement of labor laws but are the penalties for misclassification tough enough?

MAJORITY MARKET: Brian J. Spero, center, CEO and president of The Beacon Mutual Insurance Co., speaks with Michael Lynch, vice president of legal services, and Amy Vitale, vice president, general counsel and assistant secretary. Spero said his company has 60% of the workers’ compensation market for Rhode Island.
 / PBN PHOTO/MICHAEL SALERNO
MAJORITY MARKET: Brian J. Spero, center, CEO and president of The Beacon Mutual Insurance Co., speaks with Michael Lynch, vice president of legal services, and Amy Vitale, vice president, general counsel and assistant secretary. Spero said his company has 60% of the workers’ compensation market for Rhode Island.
 / PBN PHOTO/MICHAEL SALERNO
Labor laws aren’t supposed to be this flexible. So many companies in the construction industry are misclassifying their workers – paying them less and treating them as independent contractors – that competitors who follow the rules say they are getting shut out of Rhode Island contracts. Gilbane Building Co., one of the state’s largest construction…

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