The Kentucky Labor Cabinet has announced a partnership with the U.S. Department of Labor to combat the misclassification of employees as independent contractors. Under a memorandum of understanding, both agencies may share information and coordinate law enforcement.
“Simply put, misclassification cheats workers, steals from taxpayers, hurts businesses that follow the law, and weakens our economy,” said Labor Cabinet Secretary Larry L. Roberts. “Although legitimate independent contractors are an important part of our economy, the misclassification of employees presents a serious problem that is happening at public and private projects all over the Commonwealth.”
Employers that misclassify employees as independent contractors cut costs by not paying payroll taxes, Social Security and workers’ compensation coverage. Misclassification reduces an employer’s labor and related costs, thereby allowing a business to underbid competitors.
“Misclassification deprives workers of their hard-earned wages and undercuts law-abiding businesses,” said Dr. David Weil, U.S. Department of Labor Wage and Hour administrator. “Combating misclassification is one of several important steps the U.S. Labor Department is taking to ensure that workers receive a fair day’s pay for a fair day’s work.”
Workers who suspect they are victims of misclassification can fill out a wage and hour complaint form online at www.labor.ky.gov.
For more information about federal wage laws, or to file a complaint with the U.S. Department of Labor, call the toll-free helpline at 866-4US-WAGE (487-9243).
From Kentucky Labor Cabinet