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DOL and PA Enter Agreement Regarding Misclassification

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DOL and PA Enter Agreement Regarding Misclassification

August 8, 2016
On August 4, the U.S. Department of Labor (DOL) and the Pennsylvania Department of Labor & Industry signed a three-year Memorandum of Understanding (MOU) that seeks to prevent the misclassification of employees as independent contractors. The MOU includes a plan for the agencies to provide clear, accurate, and easy-to-access outreach to employers, employees and other stakeholders. It also contains an agreement to share resources and conduct coordinated investigations. 
 
This MOU is the latest in a series of DOL/state agreements of the kind. There are thirty-one other states that have entered into similar agreements. Last year, DOL issued guidance to reinforce and reiterate proper classification of independent contractors. (See WICs article, "DOL Issues Guidance on Misclassification of Independent Contractors," July 16, 2015.)