Tuesday, February 28, 2012

US Labor Department, Louisiana Workforce Commission sign agreement to reduce misclassification of employees as independent contractors

From the Wage and Hour Division News Release -

U.S. Department of Labor's Wage and Hour Division, and Louisiana Workforce Commission signed a memorandum of understanding Feb. 23 regarding the improper classification of employees as independent contractors. This partnership is the 13th of its kind for the U.S. Department of Labor.

"This memorandum of understanding helps us send a message: We're standing united to end the practice of misclassifying employees," said Leppink. "This is an important step toward making sure that the American dream is still available for employees and responsible employers alike."

"Initiatives like this are critical in leveling the playing field for businesses that play by the rules," Eysink said. "They're also vital for ensuring that eligible, hardworking men and women get the coverage and benefits they earn if they are injured on the job or lose their jobs through no fault of their own."

Memorandums of understanding with state government agencies arose as part of the U.S. Department of Labor's Misclassification Initiative, which was launched under the auspices of Vice President Biden's Middle Class Task Force with the goal of preventing, detecting and remedying employee misclassification. California, Colorado, Connecticut, Hawaii, Illinois, Maryland, Massachusetts, Minnesota, Missouri, Montana, Utah and Washington have signed similar agreements. More information is available on the U.S. Department of Labor's misclassification Web page at http://www.dol.gov/misclassification.

Read the full news release here

This information is intended to be educational and should not be considered legal advice on any specific matter.