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AG Nessel creates unit to target payroll, tax fraud

Nessel's office says wage theft occurs most often in industries such as construction, landscaping, janitorial services and child care.
Credit: AP
Michigan Attorney General Dana Nessel attends an event for Democratic presidential candidate Sen. Kirsten Gillibrand, D-N.Y., in Clawson, Mich., Monday, March 18, 2019. The Michigan attorney general's office has settled a lawsuit by same-sex couples who say their rights have been violated by faith-based adoption agencies that don't want to work with gays and lesbians. Under the settlement announced Friday, March 22, 2019 the state says it will enforce non-discrimination provisions in its foster care and adoption agency contracts. Nessel initiated settlement talks. She says discrimination in foster care and adoption services is "illegal." (AP Photo/Paul Sancya)

LANSING, Mich. (AP) — Michigan Attorney General Dana Nessel is establishing a special unit in her office to investigate payroll fraud and the misclassification of workers by "shady" businesses.

The Democrat, who announced the initiative Monday, says payroll and tax fraud have gone under the radar for far too long. She says her office will be "as aggressive as possible" cracking down on businesses that cheat workers of wages and dodge taxes.

Nessel's announcement was made in conjunction with Democratic lawmakers who plan to propose bills that would increase penalties for payroll theft, strengthen whistleblower protections and require companies to pay back wages if money is owed to workers.

Nessel's office says wage theft occurs most often in industries such as construction, landscaping, janitorial services and child care.

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