U.S employers that misclassify workers as independent contractors, as exempt for wage and hour law purposes or otherwise increasingly risk investigation and enforcement from federal and state agencies targeting perceived misclassification abuses.
U.S. employers should review and correct as needed worker misclassifications that could result in violations of federal wage and hour or other employment, tax or other laws in light of the growing enforcement emphasis and interagency coordination targeting employers that violate federal or state tax, labor and other laws by misclassifying workers. Testimony of a top Labor Department official confirms that the Obama Administration has employers that misclassify workers in its sights and is ready to take swift action to punish their noncompliance.
