The Obama administration and 11 states will join an effort tocrack down on companies such as homebuilders, hotels andrestaurants that classify employees as independent contractors toavoid paying overtime.

The Labor Department and states agreed to share informationfiled by companies as the department finds and prosecutes companiesthat misidentify workers in order to skirt paying unemploymentbenefits or federal taxes, according to Mike Wald, an agencyspokesman.

Misclassifying employees “makes it harder, especially forlow-wage workers, to put food on the table,” Labor Secretary HildaSolis said today on a conference call with reporters.

Continue Reading for Free

Register and gain access to:

  • Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
  • Informative weekly newsletter featuring news, analysis, real-world cas studies, and other critical content
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.