Maryland’s multi-agency effort to tackle workplace fraud supports workers, employers, and taxpayers

2025 Joint Enforcement Task Force report highlights key findings, recommends future steps

Baltimore, Md. (January 28, 2026) - Maryland's Joint Enforcement Task Force on Workplace Fraud (JETF) has released its 2025 annual report, which highlights how multi-agency collaboration has boosted the identification of workplace fraud and the recovery of tax dollars through investigative and enforcement actions. The report marks the task force's first full year of sustained coordination under the Moore-Miller Administration, which implemented a whole-of-government approach to strengthen investigative collaboration, referral processes, and data sharing to combat fraud and make Maryland a more equitable place to work and do business.

"This report highlights the progress that Task Force agencies have made with a coordinated strategy," said Maryland Secretary of Labor and JETF Chair Portia Wu. "Identifying workplace fraud is crucial to creating a level playing field for all businesses and getting workers fair pay and treatment."

Workplace fraud deprives employees of their rights and essential protections, such as unemployment benefits, workers' compensation, and overtime pay. It also creates a disadvantage for responsible businesses who want to compete on an even playing field, in addition to straining public resources.

In January 2024, Governor Wes Moore signed an executive order to renew and expand the cross-governmental task force dedicated to strengthening investigations and enforcement of laws regarding workplace fraud, which occurs when an employer fails to properly classify a worker as an employee-in violation of the law. Chaired by the secretary of the Maryland Department of Labor, the task force includes representation from the department, in addition to representation from the Office of the Comptroller, Office of the Attorney General, Maryland Insurance Administration, Workers' Compensation Commission, and the Department of Assessments and Taxation.

In Maryland, worker misclassification is particularly common in fields like construction, home healthcare, and landscaping.

Key findings from the 2025 report include:

• JETF participating agencies identified 7,767 misclassified workers.
• The Division of Unemployment Insurance identified over $52 million in unreported taxable wages and over $174 million in total unreported wages, and is actively recovering these funds from employers.
• The Maryland Comptroller assessed $3.6 million in tax, interest, and penalties on non-compliant businesses.
• The Maryland Department of Labor's Division of Labor and Industry significantly expanded its reach, conducting 433 site visits and interviewing over 3,000 workers. Increased multi-agency coordination made it possible for Labor and Industry to refer 375 potential cases of misclassification to sister Task Force agencies in FY 2025, compared with 130 in FY 2024 (as JETF began its work), and 62 combined for FY 2022 and FY 2023.

The report also outlines recommendations to further combat fraud, including legislative changes to strengthen the state's ability to combat violations of the Workplace Fraud Act; developing resources for employers, to support compliance; and education and outreach campaigns for workers, to make them aware of their rights and how to report misclassification.

"Wage theft and worker misclassification don't just harm employees, they undermine Maryland's entire economy," said Maryland Comptroller Brooke Lierman. "When bad actors dodge their obligations, they steal from workers, disadvantage honest businesses, and deprive our state of the resources needed to serve the public. The findings in this year's JETF report make clear that our coordinated enforcement efforts are working, and we're only getting stronger. My office will continue to stand firmly with law-abiding employers by holding tax scofflaws accountable and ensuring that every business competes on a level playing field."

"Workplace fraud denies Marylanders the overtime, benefits, and protections they deserve and have earned under Maryland law," said Attorney General Anthony Brown. "Through coordinated enforcement, the Joint Enforcement Task Force has ensured bad actors can't hide and Maryland workers are protected."

This 2025 report is available through the JETF website.

Workers who have questions about their employment status or who believe they have been subject to workplace fraud can contact the Division of Labor and Industry at workrights@maryland.gov. Misclassification cases will be referred to JETF agencies.

MEDIA CONTACT:
Dinah Winnick

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