The cost of misclassification to workers, low and high estimates, percent difference relative to W-2 workers

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 -20.4% -31.7% -19.6% -27.6% -20.4% -34.1% -20.5% -28.9% -19.8% -27.8% -19.5% -27.5% -20.5% -34.2% -19.8% -27.8% -19.2% -28.1% -17.9% -24.8% -19.7% -27.7%
Alaska -21.1% -33.0% -20.5% -28.9% -21.6% -35.9% -21.3% -30.1% -20.5% -28.9% -20.4% -28.7% -21.7% -36.0% -20.6% -29.0% -20.1% -29.5% -18.7% -25.9% -20.3% -28.7%
Arizona -20.1% -31.2% -19.5% -27.2% -20.7% -34.0% -20.2% -28.4% -19.6% -27.4% -19.5% -27.3% -20.6% -34.0% -19.6% -27.3% -19.3% -28.0% -17.8% -24.5% -19.5% -27.3%
Arkansas -20.9% -31.9% -20.1% -27.7% -21.1% -34.3% -20.9% -28.9% -20.3% -27.9% -20.0% -27.7% -21.2% -34.4% -20.2% -27.9% -19.8% -28.4% -18.3% -24.9% -20.0% -27.7%
California -21.0% -32.9% -20.4% -28.7% -21.7% -36.0% -21.3% -30.1% -20.5% -28.9% -20.5% -28.8% -21.8% -36.1% -20.5% -28.8% -20.3% -29.7% -18.7% -25.9% -20.5% -28.8%
Colorado -20.1% -31.2% -19.4% -27.2% -20.6% -33.9% -19.5% -27.3% -19.4% -27.1% -20.7% -34.0% -19.5% -27.2% -18.9% -27.6% -17.8% -24.5% -19.4% -27.2%
Connecticut -23.0% -35.8% -22.0% -31.0% -23.1% -38.4% -22.6% -32.1% -22.1% -31.1% -21.9% -30.9% -23.2% -38.5% -22.0% -31.0% -21.3% -31.4% -19.7% -27.5% -22.0% -31.1%
Delaware -20.5% -31.4% -20.0% -27.6% -21.2% -34.3% -20.9% -28.9% -20.1% -27.8% -20.0% -27.6% -21.3% -34.4% -20.2% -27.8% -20.1% -28.7% -18.4% -25.0% -20.1% -27.8%
District of Columbia -20.5% -31.4% -19.8% -27.4% -21.1% -34.3% -20.8% -28.8% -20.0% -27.6% -19.8% -27.4% -20.0% -27.6% -20.0% -28.5% -18.2% -24.8% -19.8% -27.4%
Florida -20.7% -31.5% -20.0% -27.6% -21.2% -34.3% -21.0% -29.0% -20.2% -27.8% -20.0% -27.6% -21.3% -34.4% -20.2% -27.8% -20.0% -28.5% -18.4% -25.0% -20.1% -27.8%
Georgia -20.7% -31.6% -20.0% -27.7% -21.2% -34.3% -21.0% -29.0% -20.2% -27.8% -20.0% -27.6% -21.3% -34.4% -20.2% -27.8% -20.2% -28.7% -18.5% -25.1% -20.1% -27.7%
Hawaii -21.0% -32.9% -20.5% -28.9% -21.7% -36.0% -21.3% -30.1% -20.6% -28.9% -20.5% -28.9% -20.5% -28.8% -20.6% -30.0% -18.7% -25.9% -20.5% -28.9%
Idaho -20.2% -31.3% -19.5% -27.3% -20.6% -34.0% -20.4% -28.5% -19.6% -27.3% -19.4% -27.2% -20.6% -34.0% -19.7% -27.5% -19.2% -27.9% -17.9% -24.6% -19.6% -27.4%
Illinois -21.4% -34.4% -20.7% -29.9% -21.7% -37.3% -21.4% -31.0% -20.8% -30.0% -20.6% -29.8% -21.7% -37.4% -20.7% -29.9% -20.1% -30.4% -18.8% -26.7% -20.7% -30.0%
Indiana -21.5% -34.6% -20.8% -30.0% -21.7% -37.4% -21.5% -31.1% -20.9% -30.1% -20.7% -29.9% -21.8% -37.5% -20.9% -30.1% -20.4% -30.7% -18.9% -26.9% -20.7% -29.9%
Iowa -21.1% -34.2% -20.4% -29.6% -21.4% -37.0% -21.0% -30.7% -20.5% -29.8% -20.3% -29.5% -21.4% -37.1% -20.3% -29.5% -19.8% -30.2% -18.6% -26.6% -20.4% -29.6%
Kansas -21.2% -34.3% -20.4% -29.6% -21.3% -36.9% -21.0% -30.7% -20.6% -29.8% -20.3% -29.5% -21.4% -37.1% -20.5% -29.7% -20.0% -30.3% -18.6% -26.5% -20.5% -29.7%
Kentucky -20.2% -31.6% -19.5% -27.5% -20.4% -34.2% -20.2% -28.6% -19.7% -27.6% -19.5% -27.5% -20.5% -34.2% -19.7% -27.7% -19.0% -27.9% -17.9% -24.8% -19.6% -27.6%
Louisiana -20.8% -31.8% -20.0% -27.7% -21.2% -34.3% -21.1% -29.1% -20.5% -28.1% -20.2% -27.8% -21.2% -34.4% -20.4% -28.1% -19.8% -28.4% -18.4% -25.0% -20.2% -27.9%
Maine -23.1% -35.9% -22.0% -31.1% -23.1% -38.5% -22.6% -32.1% -22.0% -31.1% -21.9% -30.9% -23.1% -38.5% -22.0% -31.1% -20.7% -30.9% -19.7% -27.5% -22.0% -31.0%
Maryland -20.5% -31.4% -19.9% -27.6% -21.2% -34.3% -20.9% -28.9% -20.0% -27.6% -20.0% -27.6% -21.3% -34.4% -20.2% -27.8% -19.9% -28.5% -18.3% -24.9% -20.0% -27.6%
Massachusetts -22.9% -35.7% -21.9% -30.9% -23.1% -38.4% -22.6% -32.1% -22.0% -31.1% -21.9% -30.9% -23.1% -38.5% -22.0% -31.1% -21.2% -31.3% -19.7% -27.5% -22.0% -31.0%
Michigan -21.5% -34.6% -20.7% -29.9% -21.8% -37.4% -21.4% -31.1% -20.9% -30.1% -20.7% -29.9% -21.8% -37.5% -20.8% -30.0% -20.2% -30.5% -18.8% -26.8% -20.8% -30.0%
Minnesota -21.0% -34.0% -20.3% -29.5% -21.3% -36.9% -21.0% -30.6% -20.3% -29.6% -20.2% -29.4% -21.4% -37.0% -20.4% -29.6% -19.8% -30.1% -18.4% -26.4% -20.2% -29.5%
Mississippi -20.4% -31.7% -19.6% -27.5% -20.4% -34.1% -20.4% -28.8% -20.0% -27.9% -19.6% -27.6% -20.5% -34.3% -19.9% -27.9% -19.0% -27.9% -17.9% -24.8% -19.7% -27.7%
Missouri -21.1% -34.1% -20.4% -29.6% -21.4% -37.0% -21.0% -30.7% -20.5% -29.8% -20.3% -29.6% -21.4% -37.1% -20.5% -29.7% -19.9% -30.2% -18.6% -26.5% -20.3% -29.5%
Montana -20.1% -31.2% -19.6% -27.3% -20.5% -33.9% -20.3% -28.4% -19.5% -27.3% -19.4% -27.2% -20.6% -34.0% -19.4% -27.1% -19.5% -28.2% -17.9% -24.6% -19.6% -27.3%
Nebraska -21.1% -34.2% -20.4% -29.6% -21.3% -36.9% -21.0% -30.7% -20.5% -29.8% -20.3% -29.5% -21.4% -37.1% -20.6% -29.8% -18.6% -26.6% -20.4% -29.6%
Nevada -20.1% -31.2% -19.5% -27.3% -20.6% -33.9% -20.4% -28.5% -19.7% -27.5% -19.5% -27.3% -20.7% -34.0% -19.6% -27.4% -19.3% -28.0% -17.9% -24.6% -19.5% -27.3%
New Hampshire -23.0% -35.8% -22.0% -31.1% -23.1% -38.4% -22.6% -32.1% -22.0% -31.1% -21.9% -30.9% -23.2% -38.6% -22.1% -31.2% -21.3% -31.4% -19.7% -27.5% -21.9% -30.9%
New Jersey -20.7% -33.6% -20.3% -29.5% -21.6% -37.1% -21.4% -30.9% -20.5% -29.6% -20.3% -29.4% -21.7% -37.2% -20.4% -29.6% -20.6% -30.8% -18.8% -26.6% -20.4% -29.5%
New Mexico -20.3% -31.4% -19.5% -27.3% -20.7% -34.0% -20.4% -28.6% -19.7% -27.5% -19.5% -27.3% -20.7% -34.0% -19.7% -27.5% -19.1% -27.8% -18.0% -24.7% -19.6% -27.4%
New York -20.7% -33.6% -20.3% -29.4% -21.6% -37.1% -21.4% -31.0% -20.4% -29.6% -20.4% -29.5% -21.7% -37.2% -20.4% -29.5% -20.5% -30.8% -18.7% -26.6% -20.4% -29.5%
North Carolina -20.7% -31.5% -20.0% -27.6% -21.2% -34.3% -21.0% -29.0% -20.2% -27.9% -20.0% -27.6% -21.3% -34.4% -20.3% -27.9% -20.1% -28.6% -18.4% -25.0% -20.2% -27.8%
North Dakota -21.1% -34.2% -20.5% -29.7% -21.3% -36.9% -20.9% -30.6% -20.4% -29.6% -20.2% -29.4% -21.4% -37.0% -20.4% -29.6% -18.5% -26.4% -20.4% -29.6%
Ohio -21.5% -34.5% -20.7% -30.0% -21.7% -37.4% -21.5% -31.2% -20.9% -30.1% -20.7% -30.0% -21.8% -37.5% -20.9% -30.1% -20.1% -30.4% -18.9% -26.8% -20.9% -30.1%
Oklahoma -20.9% -31.8% -20.0% -27.6% -21.1% -34.3% -21.0% -29.1% -20.2% -27.9% -20.0% -27.7% -21.2% -34.4% -20.3% -28.0% -19.8% -28.4% -18.3% -24.9% -20.3% -27.9%
Oregon -21.1% -33.0% -20.5% -28.8% -21.6% -35.9% -21.3% -30.1% -20.5% -28.9% -20.4% -28.8% -21.8% -36.1% -20.5% -28.8% -20.3% -29.7% -18.7% -25.9% -20.5% -28.8%
Pennsylvania -20.8% -33.7% -20.5% -29.6% -21.6% -37.1% -21.4% -31.0% -20.6% -29.7% -20.4% -29.5% -21.7% -37.2% -20.6% -29.7% -20.7% -31.0% -18.9% -26.8% -20.4% -29.6%
Rhode Island -22.9% -35.7% -22.0% -31.1% -23.0% -38.4% -22.6% -32.1% -22.1% -31.1% -21.9% -30.9% -23.1% -38.5% -22.0% -31.0% -21.1% -31.3% -19.7% -27.5% -22.0% -31.0%
South Carolina -20.7% -31.5% -20.0% -27.6% -21.2% -34.3% -21.0% -29.0% -20.3% -27.9% -20.0% -27.6% -21.3% -34.4% -20.2% -27.8% -20.2% -28.7% -18.5% -25.1% -20.1% -27.8%
South Dakota -21.2% -34.3% -20.4% -29.7% -21.3% -36.9% -21.0% -30.6% -20.5% -29.7% -20.4% -29.6% -21.4% -37.1% -20.2% -29.4% -19.7% -30.0% -18.5% -26.5% -20.4% -29.6%
Tennessee -20.3% -31.7% -19.5% -27.5% -20.4% -34.1% -20.2% -28.6% -19.7% -27.7% -19.4% -27.4% -20.5% -34.2% -19.5% -27.5% -19.2% -28.1% -17.9% -24.8% -19.6% -27.6%
Texas -20.9% -31.8% -20.0% -27.7% -21.1% -34.3% -20.9% -28.9% -20.2% -27.9% -20.0% -27.7% -21.2% -34.3% -20.2% -27.8% -19.6% -28.2% -18.3% -24.9% -20.2% -27.8%
Utah -20.1% -31.2% -19.5% -27.3% -20.6% -33.9% -20.2% -28.4% -19.7% -27.5% -19.5% -27.2% -20.7% -34.1% -19.5% -27.3% -19.4% -28.1% -17.9% -24.6% -19.5% -27.3%
Vermont -23.1% -35.9% -22.0% -31.1% -23.1% -38.5% -22.6% -32.1% -22.0% -31.1% -21.9% -30.9% -23.0% -38.4% -22.0% -31.0% -21.2% -31.3% -19.7% -27.5% -22.0% -31.0%
Virginia -20.7% -31.6% -20.0% -27.6% -21.2% -34.3% -20.9% -28.9% -20.2% -27.8% -20.0% -27.6% -21.3% -34.4% -20.1% -27.7% -19.9% -28.4% -18.4% -25.0% -20.0% -27.6%
Washington -21.0% -32.9% -20.4% -28.8% -21.6% -35.9% -21.2% -30.0% -20.5% -28.9% -20.4% -28.7% -21.7% -36.0% -20.5% -28.8% -20.1% -29.5% -18.6% -25.9% -20.4% -28.7%
West Virginia -20.7% -31.6% -20.1% -27.7% -21.3% -34.4% -21.0% -29.0% -20.3% -27.9% -20.2% -27.8% -21.3% -34.4% -20.4% -28.0% -19.9% -28.4% -18.5% -25.1% -20.3% -27.9%
Wisconsin -21.5% -34.5% -20.7% -29.9% -21.7% -37.4% -21.4% -31.0% -20.8% -30.0% -20.7% -29.9% -21.8% -37.5% -20.9% -30.1% -20.2% -30.6% -18.8% -26.8% -20.7% -30.0%
Wyoming -20.2% -31.3% -19.5% -27.3% -20.5% -33.9% -20.4% -28.6% -19.7% -27.5% -19.5% -27.2% -20.7% -34.0% -19.3% -27.0% -18.0% -24.7% -19.6% -27.3%

Notes: Estimates represent the percentage difference in the value of a job to a W-2 employee compared to an independent contractor under two models. The low estimate reflects the percentage difference when the independent contractor receives full compensation for health and retirement benefits. The high estimate reflects the percentage 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.

View the underlying data on epi.org.