USDOL Wage & Hour Division – Myths About Misclassification – Updated

Dr. David Weil
Wage and Hour Division

As you know, the misclassification of employees as independent contractors is a serious problem our country is facing, affecting workers, employers, and the entire economy.

Misclassified employees often are denied access to critical benefits and protections to which they are entitled, such as the minimum wage, overtime compensation, family and medical leave, unemployment insurance, and safe workplaces. Employee misclassification generates substantial losses to the federal, state, and local governments in the form of lower tax revenues, as well as to state unemployment insurance and workers’ compensation funds. It hurts taxpayers and undermines the economy.

The Department of Labor’s Wage and Hour Division wants to clear up confusion about who is an employee and who is an independent contractor. Visit our Myths About Misclassification webpage and download our one-page flyer Get the Facts on Misclassification to view common myths and the truths that dispel each myth.

(Read More)

(Fact Sheet)