The US Department of Labor’s wage and hour division and the North Carolina Industrial Commission signed a three-year memorandum of understanding to work together to reduce the misclassification of workers as independent contractors or other nonemployee statuses. The agreement helps both agencies provide outreach, share resources and enhance enforcement by conducting coordinated investigations and sharing information.

“The Industrial Commission is excited about this agreement with the US Department of Labor to share information critical to identifying potential employee misclassification, and we are looking forward to this collaboration as it will assist us in achieving our strategic goals,” said North Carolina Industrial Commission Chairman Charlton Allen.

The Labor Department has similar memorandums of understanding with 32 US states and last month signed an agreement with the US Department of Housing and Urban Development, the first of its kind between the federal agencies.

“The Wage and Hour Division continues to attack this problem head on through a combination of a robust education and outreach, and nationwide, data-driven strategic enforcement across industries,” said David Weil, administrator of the Wage and Hour Division. “Our goal is always to strive toward workplaces with decreased misclassification, increased compliance, and more workers receiving a fair day’s pay for a fair day’s work.”