Officials of the Department of Labor’s Wage and Hour Division (WHD) and the Alabama Department of Labor today signed a memorandum of understanding (MOU) to protect the rights of employees by preventing their being misclassified as something other than employees, such as independent contractors. The MOU represents a new effort on the part of the agencies to work together to protect the rights of employees and level the playing field for responsible employers by reducing the practice of misclassification.
The Alabama Department of Labor is the latest state agency to partner with the U.S. Labor Department.
In Fiscal Year 2013, WHD investigations resulted in more than $83,051,159 in back wages for more than 108,050 workers in industries such as janitorial, food, construction, day care, hospitality and garment. WHD regularly finds large concentrations of misclassified workers in low-wage industries.
“Misclassification deprives workers of rightfully-earned wages and undercuts law-abiding businesses,” said David Weil, administrator of the Wage and Hour Division. “This memorandum of understanding sends a clear message that we are standing together with the state of Alabama to protect workers and responsible employers and ensure everyone has the opportunity to succeed.”
To understand the issue better, please procure a copy of our Worker Misclassification Prevention Kit.