Crackdown on employee misclassification will continue, Labor official says

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Federal and state agencies are continuing to combine efforts to fight misclassification of workers as independent contractors or overtime-exempt employees

August 21, 2012

Federal and state agencies are continuing to combine efforts to fight misclassification of workers as independent contractors or overtime-exempt employees, U.S. Labor Department Solicitor M. Patricia Smith says. Partnership arrangements between the Labor Department and states are facilitating information sharing and joint enforcement actions. Recognizing that Internal Revenue Service authority over misclassification-related tax law violations is “the biggest stick out there,” Smith said the Labor Department has been providing a lot of information to IRS to boost enforcement of federal laws.

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