A recent study from Valen Technologies revealed the construction industry has the highest payroll misclassification rate with insurers than any other industry in the country. Construction companies reported the highest percentage of misclassified payroll at 14 percent on average, costing $76.8 billion in payroll between 2008 and 2011.

According to Dax Craig, president and CEO of Valen Technologies, workers' compensation in construction is often hard to predict due to varying conditions on the job site and with consumer demand. Because workers compensation is an important component of construction industry expenses, properly keeping track of manpower and reporting will help reduce errors that are draining the industry of billions of dollars each year.

"We see the industry embracing technology more and more, helping to mitigate and offset these types of errors, and taking action against what was previously unknown," Craig said.