DOL cracks down on employers in natural gas industry
The U.S Department of Labor recently announced plans to crack down on employers in the natural gas industry, according to the Times Tribune.
Although the department hasn't released specific reasons for launching the investigation, a report from Economic Modeling Specialists Inc. has demonstrated declines in the number of workers covered by unemployment insurance within the mining, quarrying, oil and gas extraction industries. This may suggest employers within the industry are classifying workers as independent contractors instead of employees to avoid paying them extra wages.
"When it happens it is typically not an accidental violation," said Mark Price, an economist with the Keystone Research Center, as quoted by the source. "It is typically part of a pattern where an employer has figured out this is a way to make money."
Employee misclassifications are a growing problem in the nation's labor force. Last year, the Wage and Hour Division investigated and recovered more than $5 million in back wages from businesses that were classifying workers illegally. This practice often results in unpaid overtime and minimum wage violations.
It's imperative for employers to compensate employees according to labor laws. Payroll processing services can reduce a business' liability by tracking employee attendance and allocating proper payment.
Although the department hasn't released specific reasons for launching the investigation, a report from Economic Modeling Specialists Inc. has demonstrated declines in the number of workers covered by unemployment insurance within the mining, quarrying, oil and gas extraction industries. This may suggest employers within the industry are classifying workers as independent contractors instead of employees to avoid paying them extra wages.
"When it happens it is typically not an accidental violation," said Mark Price, an economist with the Keystone Research Center, as quoted by the source. "It is typically part of a pattern where an employer has figured out this is a way to make money."
Employee misclassifications are a growing problem in the nation's labor force. Last year, the Wage and Hour Division investigated and recovered more than $5 million in back wages from businesses that were classifying workers illegally. This practice often results in unpaid overtime and minimum wage violations.
It's imperative for employers to compensate employees according to labor laws. Payroll processing services can reduce a business' liability by tracking employee attendance and allocating proper payment.
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