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New York state joins with feds to combat misclassification

November 19 2013

New York state signed a memorandum of understanding with the federal government to crack down on misclassification of employees as independent contractors. It’s the 15th state to do so, and the U.S. Department of Labor reported it has secured more than $18.2 million in back wages for more than 19,000 workers since it began signing memorandums of understanding with states in September 2011.

The back wages secured represent a 97 percent increase compared to the amount collected before the federal government began joining with the states.

New York’s memorandum of understanding between the Department of Labor and the state’s Labor Department and Attorney General’s Office was announced Monday.

“Working with the states is an important tool in ending misclassification,” M. Patricia Smith, U.S. Solicitor of Labor said in a press release. “These collaborations allow us to better coordinate and ensure compliance with both federal and state laws alike.”

Other states with memorandums of understanding with the federal government to tackle independent contract misclassification include California, Colorado, Connecticut, Hawaii, Illinois, Iowa, Louisiana, Maryland, Massachusetts, Minnesota, Missouri, Montana, Utah and Washington.

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