Department of Labor to Crack Down on Independent Contractor Misclassification

Published by Meg Vergeront on | Permalink

The Secretary of the Department of Labor just announced that the Department will be cracking down on employers’ misclassification of employees as independent contractors with respect to minimum wage and overtime requirements.  Employers need to review whether those workers employers label “independent contractors” are properly classified for wage and hour purposes, as well as worker’s compensation and unemployment compensation purposes.  The definition of independent contractor is slightly different under each of these laws and employers in general must make sure that each definition is met before they can lawfully treat individuals who perform work for them as independent contractors.