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Department of Labor Budget Includes $50 Million To Investigate Worker Misclassification

Published by on February 17, 2011

According to a news release, the U.S. Department of Labor has proposed a $50 million budget to focus on worker misclassification as independent contractors in 2012.  More after the break. The news release states: In 2012, the department will continue to protect workers and level the playing field for businesses by investing almost $50 million […]

According to a news release, the U.S. Department of Labor has proposed a $50 million budget to focus on worker misclassification as independent contractors in 2012.  More after the break.

The news release states:

In 2012, the department will continue to protect workers and level the playing field for businesses by investing almost $50 million to combat worker misclassification involving the Wage and Hour Division, the Office of Federal Contract Compliance Programs, the Occupational Safety and Health Administration, the Office of the Solicitor, and the Employment and Training Administration. When workers are misclassified as independent contractors, they are deprived of benefits and protections to which they are legally entitled, and law-abiding businesses are placed at a disadvantage against employers who violate the law.

The focus on misclassification appears to extend across the DOL, including the OFCCP.  Government contractors that are subject to compliance audits by the OFCCP should expect a new focus on independent contractor misclassification.

(Hat tip to Workplace Prof Blog for calling out the story.)

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