CWS 3.0: September 17, 2014

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DOL boosts states’ misclassification efforts

The U.S. Department of Labor announced today it has awarded $10.2 million to 19 states to implement or improve worker misclassification detection and enforcement initiatives in unemployment insurance programs.

 $10.2 million to 19 states to implement or improve worker misclassification detection and enforcement initiatives in unemployment insurance programs.

“This is one of many actions the department is taking to help level the playing field for employers while ensuring workers receive appropriate rights and protections,” said U.S. Secretary of Labor Thomas E. Perez. “Today's federal grant awards will enhance states' ability to detect incidents of worker misclassification and protect the integrity of state unemployment insurance trust funds.”

The funds will help the states’ UI tax programs identify improper independent contractors classifications or employers’ failure to report paid wages. The states that were selected to receive these grants will use the funds for a variety of improvements and initiatives, including enhancing employer audit programs and conducting employer education initiatives.

While several states have existing programs designed to reduce worker misclassification, this is the first time that the DOL has awarded grants dedicated to this effort. The Consolidated Appropriations Act of 2014 authorized this grant funding for “activities to address the misclassification of workers.”

The states receiving funds are:

  • California
  • Delaware
  • Florida
  • Hawaii
  • Idaho
  • Indiana
  • Maryland
  • Massachusetts
  • New Hampshire
  • New Jersey
  • New Mexico
  • New York
  • Oregon
  • South Dakota
  • Tennessee
  • Texas
  • Utah
  • Vermont
  • Wisconsin