WHD News Brief: 08/31/2016
Release Number: 16-1411-NAT
Participants: U.S. Department of Labor’s Wage and Hour Division
North Carolina Industrial Commission
Partnership description: The U.S. Department of Labor’s Wage and Hour Division and the North Carolina Industrial Commission signed a three-year Memorandum of Understanding intended to protect employees’ rights by preventing their misclassification as independent contractors or other non-employee statuses. The two agencies will provide clear, accurate and easy-to-access outreach to employers, employees and other stakeholders; share resources; and enhance enforcement by conducting coordinated investigations and sharing information consistent with applicable law.
Background: The division is working with the U.S. Internal Revenue Service and 32 other U.S. states to combat employee misclassification and to ensure that workers get the wages, benefits and protections to which they are entitled. Labeling employees as something they are not – such as independent contractors – can deny them basic rights such as minimum wage, overtime and other benefits. Misclassification also improperly lowers tax revenues to federal and state governments, and creates losses for state unemployment insurance and workers’ compensation funds.