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Obama budget takes aim at misclassification

February 03, 2010

President Barack Obama's budget outline introduced earlier this week includes language aimed at employers who misclassify workers as independent contractors as well as $25 million for enforcement and anti-misclassification activities for states.

The Departments of Labor and Treasury are pursuing a plan to cut incentives for employers to misclassify workers, according to a budget summary.

In addition, "the 2011 budget for [the Department of Labor] includes an additional $25 million to target misclassification with 100 additional enforcement personnel and competitive grants to boost states' incentives and capacity to address this problem," according to the summary from Whitehouse.gov.