The US Department of Labor and the US Department of Housing and Urban Development signed a memorandum of understanding to work together to reduce the misclassification of workers in six western states: Colorado, Montana, North Dakota, South Dakota, Utah and Wyoming. The agreement helps both agencies communicate and cooperate more effectively and efficiently in areas of common interest, including cross training staff and providing employers and employees with information about the law.

The Labor Department in the past has signed similar memorandums of understanding with individual state agencies to combat independent contractor misclassification, but this is the first of its kind between the federal agencies.

“In recent years, our division has worked with partners like HUD to address the problem of employee misclassification in the construction industry,” said Betty Campbell, the Wage and Hour Division’s regional administrator for the Southwest. “The MOU we announce today allows us to work more closely to educate workers and employers and improve compliance in the industry.”

“Region 8 is proud to strengthen our partnership and collaboration with the US Department of Labor,” said HUD Regional Administrator Rick Garcia. “With all the complexities of labor laws and labor standards impacting new residential construction today, working closely with the department provides our customers and our staff with more efficient and effective means for success.”

In fiscal year 2015, the Labor Department’s Wage and Hour Division recovered more than $74 million in back wages for more than 102,000 workers in industries such as janitorial, food, construction, daycare, hospitality and garment.