[Excerpt] This study uses data based on audits performed by the NYS Department of Labor Unemployment Insurance Division during the four-year period 2002-2005. Audits were performed on firms in certain industries, and data was extrapolated statewide for these industries only, based on given employment information. Using general and specific audits conducted during the four year period 2002-2005, it is estimated that 39,587 New York employers (of about 400,732) in audited industries misclassified workers each year as independent contractors. Of these, approximately 5,880 employers, or 14.9%, were in the construction industry.