Figure B

Wrongful misclassification robs the social safety net of thousands of dollars per worker, per year: Median per-worker cost of misclassification to social insurance programs, by occupation and state, 2025 dollars

State Construction workers Customer service reps/call center workers Heavy and tractor-trailer truck drivers Home health and personal care aides Janitors and cleaners Landscaping workers Light truck delivery drivers Housekeeping cleaners Manicurists and pedicurists Retail sales workers Security guards
Alabama $1,601 $1,048 $2,179 $719 $859 $1,104 $1,762 $822 $728 $894 $910
Alaska $3,550 $1,717 $3,274 $1,589 $1,659 $2,014 $2,914 $2,326 $1,739 $1,554 $2,117
Arizona $2,264 $1,357 $2,180 $1,307 $1,270 $1,359 $2,305 $1,291 $1,087 $1,260 $1,383
Arkansas $1,644 $1,168 $2,326 $861 $880 $1,110 $1,764 $849 $744 $908 $1,171
California $3,525 $2,006 $3,073 $1,593 $1,579 $1,879 $2,470 $1,657 $1,322 $1,567 $1,880
Colorado $2,348 $1,642 $2,612 $1,377 $1,299 $1,625 $2,065 $1,438 $1,180 $1,313 $1,653
Connecticut $2,218 $1,385 $2,372 $1,264 $1,135 $1,474 $2,016 $1,455 $945 $1,131 $1,220
Delaware $2,084 $1,379 $2,327 $1,120 $923 $1,158 $1,809 $989 $757 $1,040 $1,143
Washington D.C. $2,113 $1,404 $2,573 $1,159 $1,185 $1,471 $1,905 $1,170 $1,252 $1,148 $2,128
Florida $1,835 $1,133 $2,289 $1,036 $925 $1,118 $1,686 $953 $873 $954 $1,114
Georgia $1,710 $1,143 $2,291 $922 $926 $1,150 $1,823 $972 $703 $901 $1,107
Hawaii $4,008 $1,637 $3,001 $1,571 $1,273 $1,730 $3,004 $1,900 $1,100 $1,510 $1,803
Idaho $2,226 $1,195 $2,390 $1,225 $1,269 $1,458 $2,462 $1,075 $1,038 $1,168 $1,332
Illinois $3,369 $1,575 $2,726 $1,355 $1,388 $1,681 $2,244 $1,324 $1,111 $1,261 $1,419
Indiana $2,534 $1,361 $2,812 $1,273 $1,211 $1,410 $2,132 $1,219 $1,066 $1,105 $1,360
Iowa $2,369 $1,329 $2,641 $1,274 $1,147 $1,436 $2,090 $1,264 $1,339 $1,082 $1,356
Kansas $2,245 $1,362 $2,768 $1,248 $1,130 $1,401 $2,005 $1,270 $974 $1,145 $1,239
Kentucky $1,949 $1,085 $2,209 $928 $916 $1,116 $1,824 $925 $1,599 $888 $1,082
Louisiana $1,796 $1,084 $2,009 $736 $864 $1,107 $1,793 $830 $779 $886 $974
Maine $2,008 $1,496 $2,108 $1,221 $1,189 $1,520 $2,043 $1,204 $1,431 $1,166 $1,341
Maryland $2,022 $1,175 $2,196 $1,159 $1,100 $1,183 $1,886 $1,001 $967 $1,038 $1,148
Massachusetts $2,794 $1,475 $2,380 $1,277 $1,448 $1,546 $2,138 $1,264 $989 $1,164 $1,465
Michigan $2,511 $1,437 $2,520 $1,296 $1,283 $1,464 $1,986 $1,326 $1,116 $1,230 $1,408
Minnesota $2,941 $1,736 $2,783 $1,376 $1,375 $1,775 $2,161 $1,387 $1,152 $1,276 $1,697
Mississippi $1,609 $1,060 $2,254 $816 $822 $1,020 $2,025 $654 $1,100 $840 $864
Missouri $2,684 $1,409 $2,361 $1,326 $1,228 $1,377 $2,131 $1,158 $1,242 $1,120 $1,381
Montana $2,413 $1,261 $2,639 $1,214 $1,341 $1,493 $2,170 $1,786 $1,239 $1,427
Nebraska $2,326 $1,319 $2,740 $1,288 $1,132 $1,483 $2,139 $1,138 $1,166 $1,088 $1,376
Nevada $2,369 $1,336 $2,633 $1,081 $1,056 $1,350 $1,948 $1,128 $1,105 $1,187 $1,313
New Hampshire $2,149 $1,473 $2,256 $1,274 $1,171 $1,461 $1,857 $1,156 $918 $1,137 $1,489
New Jersey $3,411 $1,774 $3,341 $1,510 $1,398 $1,671 $2,173 $1,313 $1,085 $1,360 $1,409
New Mexico $1,921 $1,362 $2,120 $1,045 $1,060 $1,359 $2,003 $1,329 $1,337 $1,115 $1,653
New York $2,960 $1,775 $2,804 $1,439 $1,446 $1,746 $2,220 $1,392 $1,151 $1,413 $1,463
North Carolina $1,884 $1,121 $1,953 $973 $938 $1,156 $1,665 $944 $911 $910 $1,084
North Dakota $2,419 $1,376 $2,544 $1,445 $1,320 $1,680 $2,181 $1,402 $986 $1,286 $1,350
Ohio $2,604 $1,378 $2,724 $1,281 $1,145 $1,420 $2,038 $1,198 $1,150 $1,114 $1,324
Oklahoma $1,766 $1,095 $2,330 $849 $961 $1,112 $1,517 $912 $791 $911 $1,139
Oregon $2,858 $1,751 $3,190 $1,727 $1,568 $1,902 $2,402 $1,730 $1,358 $1,522 $1,885
Pennsylvania $2,501 $1,412 $2,800 $1,381 $1,294 $1,489 $2,231 $1,347 $948 $1,154 $1,445
Rhode Island $2,612 $1,275 $2,461 $1,389 $1,151 $1,445 $2,084 $1,090 $1,047 $1,113 $1,140
South Carolina $1,812 $1,127 $2,159 $946 $874 $1,131 $1,837 $965 $690 $896 $1,081
South Dakota $2,191 $1,291 $2,713 $1,330 $1,207 $1,326 $2,120 $1,736 $1,282 $1,241 $1,360
Tennessee $1,915 $1,134 $2,258 $1,000 $906 $1,159 $1,932 $1,064 $778 $927 $1,095
Texas $1,677 $1,159 $2,247 $892 $955 $1,148 $1,835 $1,021 $988 $923 $976
Utah $2,288 $1,350 $2,629 $1,263 $1,080 $1,463 $1,911 $1,291 $1,199 $1,221 $1,561
Vermont $2,059 $1,776 $2,509 $1,256 $1,235 $1,471 $2,533 $980 $1,177 $1,387
Virginia $1,756 $1,127 $2,270 $1,078 $967 $1,185 $1,832 $1,050 $982 $968 $1,352
Washington $3,236 $1,938 $3,227 $1,889 $1,679 $2,015 $2,485 $1,741 $1,806 $1,611 $2,077
West Virginia $1,680 $1,152 $1,969 $842 $900 $950 $2,156 $863 $957 $856 $904
Wisconsin $2,668 $1,446 $2,609 $1,336 $1,331 $1,687 $2,180 $1,295 $1,073 $1,223 $1,447
Wyoming $2,238 $1,414 $2,801 $1,042 $1,274 $1,348 $2,510 $1,519 $1,117 $1,288
Economic Policy Institute

Notes: Estimates represent the difference in contributions to social insurance funds—Social Security, Medicare, federal and state unemployment insurance, and workers' compensation—between a W-2 employee and an independent contractor when the independent contractor receives no compensation for health and retirement benefits.

Source: EPI analysis of data from the Bureau of Labor Statistics' Employer Cost for Employee Compensation (ECEC) 2025Q4 and Occupational Employment and Wage Statistics (OEWS) Research Estimates by State and Industry May 2024 data.

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