On January 13, 2015, the U.S. Department of Labor issued a press release stating that officials from the U.S. Labor Department and the Florida Department of Revenue inked a memorandum of understanding intended to prevent the misclassification of employees as independent contractors. Under the agreement, the two agencies will share information and coordinate enforcement.
The Florida Department of Revenue is the latest state agency to partner with the Labor Department. Last year, we posted about the Labor Department’s September 2014, press release announcing that $10.2 million had been awarded to 19 states to implement or improve worker misclassification initiatives.
Classification of workers as employees or independent contractors is not always cut and dry. If you’re concerned about misclassification, take a look at this fact sheet as a starting point. As you can tell, it’s a complicated analysis, and no one factor is determinative! We can see that the U.S. DOL and the states are taking big strides towards enforcement, and the beginning of 2015 is an excellent time to take inventory of your workers and perform a review of their positions.
Laconic Lookout: Employers should proactively review all of their worker classifications periodically to ensure compliance. The beginning of the year is a great time to take a look at this.