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Kentucky joins feds’ misclassification fight

July 16, 2015

Kentucky signed a three-year memorandum of understanding to crack down on misclassification of employees as independent contractors, the US Department of Labor reported.

The announcement follows the release yesterday of an “administrator’s interpretation” by the Department of Labor on how the Fair Labor Standards Act’s definition of “employee” guides the determination of employee or contractor status under the “economic realities” test.

Kentucky is the 23rd state to sign a memorandum of understanding with the Department of Labor as part of its misclassification initiative. Other states signing the memorandum include Alabama, California, Colorado, Connecticut, Florida, Hawaii, Illinois, Iowa, Louisiana, Maryland, Massachusetts, Minnesota, Missouri, Montana, New Hampshire, New York, Rhode Island, Texas, Utah, Washington, Wisconsin and Wyoming.

“Simply put, misclassification cheats workers, steals from taxpayers, hurts businesses that follow the law, and weakens our economy,” said Kentucky Labor Cabinet Secretary Larry Roberts. “Although legitimate independent contractors are an important part of our economy, the misclassification of employees presents a serious problem that is happening at public and private projects all over the Commonwealth.”