A carpenters’ union has brought a class action against homebuilding titan D.R. Horton, the first known private litigation under a state law aimed at disguising undocumented workers as independent contractors to avoid paying taxes and employee benefits.
The suit, in federal court in Newark on diversity jurisdiction, invokes the 2007 Construction Industry Independent Contractor Act, which is believed to be the first state law in the country to create a private right of action by workers who claim they have been denied employment due to an employer’s knowing misclassification of its labor force.
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