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Louisiana Signs Misclassification Agreement

February 24 2012

Louisiana became the 13th state to sign a memorandum of understanding with the U.S. Department of Labor to work together to root out misclassification of independent contractors.

“Initiatives like this are critical in leveling the playing field for businesses that play by the rules,” said Curt Eysink, executive director of  Louisiana’s Workforce Commission. “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.”

Other states with similar memorandums of understanding include California, Colorado, Connecticut, Hawaii, Illinois, Maryland, Massachusetts, Minnesota, Missouri, Montana, Utah and Washington.

The Department of Labor collected more than $5 million in back wages in 2011 for minimum wage and overtime violations that resulted from employees being misclassified as independent contractors or otherwise not treated as employees.

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