The cost of misclassification to workers, low and high estimates, net difference relative to W-2 workers, 2024 dollars
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 | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
State | Low estimate | High estimate | Low estimate | High estimate | Low estimate | High estimate | Low estimate | High estimate | Low estimate | High estimate | Low estimate | High estimate | Low estimate | High estimate | Low estimate | High estimate | Low estimate | High estimate | Low estimate | High estimate | Low estimate | High estimate |
Alabama | $7,852 | $12,242 | $6,181 | $8,696 | $12,656 | $21,146 | $4,838 | $6,816 | $5,350 | $7,510 | $6,933 | $9,771 | $10,495 | $17,498 | $5,291 | $7,426 | $5,677 | $8,323 | $5,165 | $7,153 | $5,675 | $7,974 |
Alaska | $11,990 | $18,764 | $7,954 | $11,198 | $14,860 | $24,691 | $7,846 | $11,074 | $7,734 | $10,885 | $9,474 | $13,364 | $12,848 | $21,320 | $6,920 | $9,726 | $9,234 | $13,531 | $6,830 | $9,473 | $9,919 | $13,997 |
Arizona | $9,834 | $15,249 | $7,524 | $10,523 | $10,936 | $18,008 | $7,225 | $10,135 | $6,384 | $8,909 | $7,348 | $10,273 | $11,290 | $18,598 | $6,859 | $9,581 | $6,941 | $10,077 | $6,131 | $8,431 | $7,135 | $9,971 |
Arkansas | $8,043 | $12,251 | $6,989 | $9,657 | $11,505 | $18,684 | $5,913 | $8,187 | $5,673 | $7,816 | $7,211 | $9,968 | $10,623 | $17,237 | $5,975 | $8,238 | $5,740 | $8,231 | $5,384 | $7,323 | $7,207 | $9,963 |
California | $13,124 | $20,554 | $9,285 | $13,094 | $13,959 | $23,181 | $8,119 | $11,463 | $7,657 | $10,776 | $8,259 | $11,633 | $11,274 | $18,683 | $8,101 | $11,408 | $7,285 | $10,644 | $6,830 | $9,473 | $8,178 | $11,518 |
Colorado | $10,049 | $15,586 | $8,180 | $11,450 | $13,088 | $21,592 | $7,122 | $9,953 | $8,780 | $12,300 | $10,548 | $17,363 | $7,547 | $10,555 | $11,276 | $16,461 | $6,369 | $8,763 | $7,862 | $11,001 | ||
Connecticut | $12,478 | $19,439 | $8,661 | $12,221 | $14,673 | $24,450 | $8,854 | $12,573 | $7,823 | $11,026 | $10,283 | $14,534 | $12,364 | $20,569 | $8,725 | $12,312 | $6,762 | $9,975 | $6,968 | $9,730 | $8,385 | $11,827 |
Delaware | $10,421 | $15,951 | $7,484 | $10,335 | $12,915 | $20,915 | $7,111 | $9,831 | $6,373 | $8,783 | $7,492 | $10,346 | $10,955 | $17,712 | $6,169 | $8,497 | $5,818 | $8,285 | $5,768 | $7,827 | $6,334 | $8,729 |
District of Columbia | $10,309 | $15,779 | $10,081 | $13,964 | $14,002 | $22,691 | $7,594 | $10,508 | $7,628 | $10,536 | $9,225 | $12,768 | $7,643 | $10,558 | $6,868 | $9,805 | $6,779 | $9,220 | $10,250 | $14,201 | ||
Florida | $8,462 | $12,920 | $7,577 | $10,466 | $12,619 | $20,431 | $6,672 | $9,217 | $5,853 | $8,057 | $7,231 | $9,982 | $10,119 | $16,345 | $6,239 | $8,595 | $6,872 | $9,811 | $5,668 | $7,690 | $6,375 | $8,786 |
Georgia | $8,297 | $12,666 | $7,104 | $9,805 | $13,645 | $22,108 | $6,232 | $8,600 | $5,943 | $8,182 | $7,377 | $10,186 | $10,657 | $17,225 | $6,029 | $8,302 | $5,612 | $7,987 | $5,337 | $7,234 | $6,879 | $9,490 |
Hawaii | $14,200 | $22,254 | $7,764 | $10,928 | $13,394 | $22,235 | $7,724 | $10,899 | $7,300 | $10,267 | $8,006 | $11,273 | $8,287 | $11,673 | $5,348 | $7,775 | $6,688 | $9,273 | $7,936 | $11,173 | ||
Idaho | $9,272 | $14,368 | $7,084 | $9,899 | $12,003 | $19,785 | $6,383 | $8,939 | $6,787 | $9,479 | $7,836 | $10,964 | $10,986 | $18,092 | $5,811 | $8,097 | $7,060 | $10,252 | $5,639 | $7,745 | $6,622 | $9,245 |
Illinois | $14,641 | $23,594 | $8,176 | $11,820 | $14,659 | $25,240 | $7,816 | $11,356 | $7,612 | $10,995 | $9,641 | $13,964 | $13,740 | $23,644 | $8,289 | $11,986 | $7,955 | $12,044 | $6,520 | $9,294 | $7,858 | $11,355 |
Indiana | $11,439 | $18,392 | $7,459 | $10,772 | $14,375 | $24,747 | $7,026 | $10,194 | $6,725 | $9,697 | $8,004 | $11,569 | $11,400 | $19,577 | $6,764 | $9,754 | $5,907 | $8,902 | $5,773 | $8,213 | $8,037 | $11,617 |
Iowa | $10,719 | $17,352 | $7,634 | $11,090 | $12,396 | $21,470 | $7,435 | $10,855 | $6,320 | $9,156 | $8,076 | $11,740 | $11,588 | $20,056 | $8,574 | $12,473 | $7,062 | $10,731 | $5,676 | $8,110 | $7,584 | $11,016 |
Kansas | $9,193 | $14,854 | $7,642 | $11,102 | $14,235 | $24,689 | $7,662 | $11,191 | $6,042 | $8,748 | $8,167 | $11,874 | $11,213 | $19,399 | $6,684 | $9,693 | $5,998 | $9,089 | $5,810 | $8,306 | $6,725 | $9,752 |
Kentucky | $9,129 | $14,263 | $6,789 | $9,565 | $12,276 | $20,504 | $6,163 | $8,718 | $5,888 | $8,278 | $7,155 | $10,089 | $10,827 | $18,058 | $5,453 | $7,657 | $6,936 | $10,203 | $5,262 | $7,289 | $6,122 | $8,612 |
Louisiana | $8,958 | $13,664 | $7,147 | $9,878 | $11,071 | $17,972 | $5,112 | $7,061 | $4,919 | $6,761 | $6,175 | $8,519 | $10,626 | $17,241 | $4,972 | $6,835 | $5,481 | $7,852 | $5,226 | $7,105 | $5,969 | $8,230 |
Maine | $10,995 | $17,108 | $8,192 | $11,552 | $12,754 | $21,225 | $8,521 | $12,095 | $8,335 | $11,755 | $10,362 | $14,646 | $12,889 | $21,452 | $8,326 | $11,743 | $15,516 | $23,085 | $7,102 | $9,920 | $8,883 | $12,537 |
Maryland | $10,155 | $15,540 | $7,994 | $11,047 | $13,075 | $21,177 | $7,533 | $10,422 | $7,206 | $9,946 | $7,815 | $10,797 | $11,401 | $18,440 | $6,221 | $8,571 | $7,258 | $10,370 | $6,111 | $8,300 | $7,816 | $10,800 |
Massachusetts | $15,717 | $24,530 | $10,184 | $14,393 | $15,040 | $25,066 | $9,019 | $12,811 | $8,295 | $11,699 | $10,632 | $15,031 | $13,134 | $21,863 | $8,547 | $12,059 | $7,515 | $11,102 | $7,192 | $10,048 | $9,168 | $12,944 |
Michigan | $11,112 | $17,861 | $7,957 | $11,500 | $12,684 | $21,809 | $7,375 | $10,707 | $6,824 | $9,842 | $8,023 | $11,596 | $11,561 | $19,857 | $7,383 | $10,660 | $6,893 | $10,415 | $6,072 | $8,645 | $7,565 | $10,926 |
Minnesota | $13,040 | $21,151 | $8,408 | $12,229 | $14,497 | $25,148 | $8,000 | $11,691 | $7,847 | $11,403 | $9,639 | $14,041 | $11,841 | $20,498 | $7,729 | $11,230 | $7,519 | $11,436 | $6,569 | $9,408 | $8,995 | $13,093 |
Mississippi | $7,781 | $12,130 | $6,500 | $9,152 | $12,843 | $21,461 | $5,307 | $7,488 | $4,655 | $6,517 | $6,154 | $8,658 | $10,354 | $17,261 | $4,704 | $6,587 | $6,891 | $10,136 | $4,976 | $6,886 | $5,515 | $7,746 |
Missouri | $11,330 | $18,352 | $7,653 | $11,117 | $12,752 | $22,094 | $7,496 | $10,945 | $6,306 | $9,135 | $7,756 | $11,269 | $11,005 | $19,035 | $6,524 | $9,457 | $7,026 | $10,675 | $5,776 | $8,256 | $7,979 | $11,597 |
Montana | $10,167 | $15,772 | $6,787 | $9,479 | $13,273 | $21,900 | $6,769 | $9,488 | $7,213 | $10,082 | $7,849 | $10,982 | $11,270 | $18,565 | $8,788 | $12,311 | $5,277 | $7,627 | $5,971 | $8,208 | $6,800 | $9,498 |
Nebraska | $10,308 | $16,678 | $7,488 | $10,876 | $14,516 | $25,181 | $7,441 | $10,864 | $6,302 | $9,129 | $8,197 | $11,919 | $11,322 | $19,589 | $6,051 | $8,760 | $5,656 | $8,082 | $7,681 | $11,159 | ||
Nevada | $10,151 | $15,746 | $7,340 | $10,262 | $13,033 | $21,500 | $6,227 | $8,717 | $5,769 | $8,038 | $7,232 | $10,108 | $10,240 | $16,850 | $6,460 | $9,017 | $6,835 | $9,920 | $5,806 | $7,977 | $7,099 | $9,920 |
New Hampshire | $11,468 | $17,851 | $8,536 | $12,043 | $15,091 | $25,152 | $8,677 | $12,319 | $8,256 | $11,643 | $9,945 | $14,052 | $11,969 | $19,905 | $7,404 | $10,429 | $6,617 | $9,758 | $6,973 | $9,738 | $10,175 | $14,380 |
New Jersey | $13,808 | $22,442 | $8,726 | $12,643 | $15,272 | $26,253 | $8,301 | $12,022 | $7,414 | $10,721 | $9,141 | $13,250 | $11,083 | $18,990 | $7,646 | $11,060 | $6,771 | $10,126 | $6,604 | $9,383 | $7,849 | $11,357 |
New Mexico | $8,079 | $12,496 | $7,277 | $10,173 | $10,460 | $17,216 | $6,043 | $8,455 | $5,758 | $8,022 | $7,255 | $10,141 | $10,205 | $16,791 | $5,851 | $8,154 | $8,887 | $12,943 | $5,415 | $7,432 | $6,337 | $8,842 |
New York | $12,940 | $21,018 | $8,952 | $12,973 | $13,958 | $23,976 | $7,999 | $11,580 | $7,717 | $11,164 | $8,239 | $11,929 | $11,145 | $19,098 | $8,133 | $11,774 | $7,259 | $10,866 | $6,868 | $9,764 | $8,024 | $11,613 |
North Carolina | $8,460 | $12,917 | $7,171 | $9,897 | $12,045 | $19,493 | $6,344 | $8,757 | $5,770 | $7,940 | $7,311 | $10,093 | $10,494 | $16,959 | $5,686 | $7,823 | $6,102 | $8,696 | $5,517 | $7,481 | $6,283 | $8,658 |
North Dakota | $10,818 | $17,513 | $6,607 | $9,579 | $14,707 | $25,516 | $8,456 | $12,366 | $7,468 | $10,846 | $9,394 | $13,680 | $11,751 | $20,341 | $7,598 | $11,037 | $6,458 | $9,246 | $7,675 | $11,150 | ||
Ohio | $11,665 | $18,759 | $7,831 | $11,315 | $13,757 | $23,673 | $6,939 | $10,065 | $6,477 | $9,334 | $7,810 | $11,285 | $11,152 | $19,147 | $6,419 | $9,250 | $7,665 | $11,598 | $5,795 | $8,245 | $6,609 | $9,528 |
Oklahoma | $8,416 | $12,827 | $7,528 | $10,412 | $12,007 | $19,508 | $5,379 | $7,437 | $6,029 | $8,314 | $7,349 | $10,161 | $10,808 | $17,540 | $5,542 | $7,633 | $5,465 | $7,830 | $5,354 | $7,282 | $5,782 | $7,968 |
Oregon | $11,062 | $17,297 | $8,231 | $11,593 | $14,730 | $24,474 | $8,351 | $11,795 | $7,578 | $10,664 | $9,127 | $12,869 | $11,276 | $18,687 | $8,051 | $11,337 | $7,307 | $10,677 | $6,630 | $9,192 | $8,130 | $11,449 |
Pennsylvania | $10,949 | $17,755 | $7,498 | $10,843 | $14,135 | $24,282 | $7,860 | $11,376 | $6,633 | $9,575 | $7,871 | $11,390 | $11,204 | $19,201 | $6,482 | $9,355 | $5,966 | $8,902 | $5,786 | $8,205 | $7,587 | $10,974 |
Rhode Island | $13,934 | $21,728 | $8,506 | $11,999 | $15,532 | $25,893 | $9,058 | $12,866 | $8,084 | $11,399 | $10,085 | $14,252 | $12,846 | $21,379 | $8,833 | $12,465 | $8,044 | $11,894 | $6,914 | $9,654 | $8,727 | $12,315 |
South Carolina | $8,384 | $12,800 | $7,217 | $9,963 | $12,470 | $20,187 | $6,325 | $8,731 | $5,704 | $7,848 | $7,307 | $10,088 | $10,357 | $16,733 | $6,149 | $8,470 | $5,747 | $8,183 | $5,347 | $7,248 | $6,365 | $8,772 |
South Dakota | $9,187 | $14,843 | $7,006 | $10,166 | $14,658 | $25,429 | $7,830 | $11,439 | $6,567 | $9,520 | $7,555 | $10,974 | $11,688 | $20,230 | $9,443 | $13,752 | $8,112 | $12,351 | $6,241 | $8,931 | $7,576 | $11,004 |
Tennessee | $8,659 | $13,520 | $7,131 | $10,053 | $12,966 | $21,668 | $6,187 | $8,752 | $5,854 | $8,229 | $7,480 | $10,553 | $10,846 | $18,091 | $6,642 | $9,356 | $5,607 | $8,219 | $5,330 | $7,384 | $6,266 | $8,818 |
Texas | $8,274 | $12,607 | $7,501 | $10,374 | $12,266 | $19,932 | $5,899 | $8,167 | $5,895 | $8,126 | $7,293 | $10,082 | $11,006 | $17,865 | $6,321 | $8,723 | $6,990 | $10,053 | $5,460 | $7,428 | $6,134 | $8,461 |
Utah | $9,929 | $15,398 | $7,454 | $10,423 | $13,152 | $21,698 | $7,243 | $10,160 | $5,927 | $8,261 | $7,766 | $10,864 | $9,873 | $16,238 | $7,293 | $10,195 | $5,931 | $8,589 | $5,894 | $8,101 | $7,460 | $10,431 |
Vermont | $10,978 | $17,081 | $8,433 | $11,896 | $13,373 | $22,265 | $8,312 | $11,795 | $8,284 | $11,683 | $10,623 | $15,019 | $15,549 | $25,923 | $8,927 | $12,600 | $7,536 | $11,134 | $7,169 | $10,015 | $8,920 | $12,591 |
Virginia | $8,289 | $12,653 | $7,268 | $10,033 | $13,030 | $21,103 | $7,146 | $9,879 | $6,136 | $8,451 | $7,731 | $10,680 | $11,188 | $18,093 | $6,682 | $9,215 | $7,444 | $10,639 | $5,771 | $7,832 | $7,781 | $10,751 |
Washington | $12,462 | $19,509 | $8,861 | $12,490 | $14,399 | $23,918 | $8,835 | $12,485 | $7,847 | $11,046 | $9,646 | $13,609 | $12,227 | $20,279 | $8,299 | $11,690 | $9,698 | $14,219 | $6,999 | $9,711 | $9,412 | $13,275 |
West Virginia | $8,316 | $12,695 | $6,984 | $9,636 | $10,910 | $17,638 | $6,197 | $8,552 | $5,556 | $7,641 | $5,978 | $8,231 | $10,614 | $17,154 | $5,215 | $7,165 | $7,745 | $11,076 | $5,173 | $7,008 | $5,708 | $7,853 |
Wisconsin | $11,622 | $18,688 | $7,978 | $11,530 | $13,844 | $23,823 | $7,775 | $11,296 | $7,123 | $10,280 | $8,611 | $12,457 | $11,753 | $20,192 | $6,822 | $9,839 | $6,559 | $9,901 | $6,003 | $8,545 | $7,823 | $11,303 |
Wyoming | $8,905 | $13,793 | $7,359 | $10,289 | $13,462 | $22,215 | $6,098 | $8,534 | $5,928 | $8,264 | $7,526 | $10,525 | $10,392 | $17,103 | $10,355 | $14,529 | $5,374 | $7,375 | $6,918 | $9,665 |
Notes: Estimates represent the difference between a value job to a W-2 employee compared to an independent contractor under two models. The low estimates refer to the difference when an independent contractor receives full compensation for health and retirement benefits. The high estimate is calculated as the difference 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) 2024Q2 Occupational Employment and Wage Statistics (OEWS) Research Estimates by State and Industry May 2023 data.