La. Workforce Commission, U.S. Labor Department partner against employee misclassification

The U.S. Department of Labor and the Louisiana Workforce Commission have signed a memorandum of understanding addressing the misclassification of employees as independent contractors. The agreement allows the federal government to share information with the state agency and coordinate enforcement efforts. In fiscal year 2011, the Labor Department’s Wage and Hour Division collected over $5 million in back wages for minimum wage and overtime violations that were a result of the employees being misclassified as independent contractors or otherwise not treated as employees, an increase of almost 400% from fiscal year 2008. “Initiatives like this are critical in leveling the playing field for businesses that play by the rules,” LWC Executive Director Curt Eysink says in a news release. “They’re also vital for ensuring that eligible, hardworking men and women get the coverage and benefits they earn if they are injured on the job or lose their jobs through no fault of their own.” The partnership is the 13th of its kind for the Department of Labor. To read a 2009 Business Report story about employee misclassification, click here.