September 19, 2011

Employee Misclassification

Secretary of Labor Hilda L. Solis announced at a ceremony on September 19, 2011 that DOL's Wage and Hour Division, IRS, and agency leaders from Connecticut, Maryland, Massachusetts, Minnesota, Missouri, Utah, and Washington signed memoranda of understanding to improve efforts to combat the business practice of misclassifying employees in order to avoid providing employment protections, i.e. paying payroll taxes, workers' compensation expenses, and other benefits.

The memoranda of understanding will enable the federal Labor Department to share information and coordinate law enforcement with the IRS and participating states to level the playing field for law-abiding employers and to ensure that employees receive the protections to which they are entitled under federal and state law.  The agreements are intended to send a coordinated message that DOL and the IRS have a new partnership. 

See http://www.dol.gov/opa/media/press/whd/WHD20111373.htm