New York Teams Up With Feds To Go After Worker Misclassification

Yesterday, New York became the latest state to partner with the U.S. Department of Labor to step up enforcement against employers suspected of misclassifying workers as independent contractors.  In a move designed to send a “clear message” to employers, officials from the U.S. DOL, the New York DOL, and the New York Attorney General’s Office signed memoranda of understanding that will enable the agencies to share information and coordinate enforcement efforts.  (See U.S. DOL/NY DOL MOU; U.S. DOL/NY AG MOU).  Fourteen other states, including California, Connecticut, Illinois and Massachusetts, have signed similar agreements.

This latest agreement is part of the U.S. DOL’s Misclassification Initiative, launched in 2011 as part of Vice President Biden’s Middle Class Task Force.  According to the agency, working with states to reduce worker misclassification serves two functions.  First, misclassified employees are denied access to benefits and protections such as family and medical leave, overtime, minimum wage and unemployment insurance.  Second, cracking down on worker misclassification helps level the playing field for law-abiding employers who otherwise face higher labor costs than competitors who seek to save money by labeling a worker an independent contractor.

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