NY partners with DOL to combat employee misclassification
New York state is collaborating with the U.S. Department of Labor to decrease the practice of employee misclassifications. As of Nov. 18, New York is now one of 15 states that have made similar agreements with the DOL. According to the signed Memorandum of Understanding, the contract improves communication between agencies, enhancing overall workplace compliance with classification laws.
Launched in 2011, the DOL created the Misclassification Initiative as a part of Vice President Joe Biden's Middle Class Task Force. To avoid paying for benefits like healthcare, overtime and unemployment insurance, many employers wrongfully classify workers as independent contractors. Eliminating this issue can help to level the playing field for businesses that classify and compensate employees lawfully.
Due to increased enforcement of accurate employee classifications, the DOL has returned more than $18 million in back wages to close to 20,000 workers since 2011, reported Forbes.
According to Seyfarth Shaw law group, employers can expect closer scrutiny as a result of the agreement. Supervisors should determine whether their workers are accurately classified rather than waiting for enforcement agents to reprimand them.
Whether workers are classified as hourly, exempt or independent contractors, it is important to maintain accurate records of employee time with attendance software.
All data and information provided on this news blog is for informational purposes only. Infinisource makes no representations as to accuracy, completeness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. All information is provided on an as-is basis. Information regarding employment suits and other legal action is not updated after publication, and may not be current.