DOL Funding State Worker Misclassification Programs

The U.S. Department of Labor has awarded more than $10 million to 19 states to improve their ability to identify improperly classified independent contractors, enhance employer audit programs, and conduct employer education initiatives. A determination of misclassification by one government agency can expose the company to penalties in many different areas. In 2011, the DOL and the Internal Revenue Service signed a memorandum, agreeing to work together and share information to reduce the incidence of misclassification of employees.