US Labor Department and Wisconsin Department of Workforce Development sign agreement to reduce misclassification of employees

Participants: Wage and Hour Division, Wisconsin Department of Workforce Development

Description: Officials from the U.S. Department of Labor and the Wisconsin Department of Workforce Development signed a memorandum of understanding with the goal of protecting the rights of employees by preventing their misclassification as independent contractors or other nonemployee statuses. Under the agreement both agencies will share information and coordinate law enforcement.

Background: The memorandum of understanding 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 Wisconsin Department of Workforce Development is the latest state agency to partner with the Labor Department. Alabama, California, Colorado, Connecticut, Florida, Hawaii, Illinois, Iowa, Louisiana, Maryland, Massachusetts, Minnesota, Missouri, Montana, New Hampshire, New York, Utah and Washington state agencies have signed similar agreements. More information is available on the Department of Labor's misclassification website at http://www.dol.gov/misclassification/.

Duration: 3 years

Quotes: "Misclassification deprives workers of rightfully-earned wages and undercuts law-abiding businesses. This memorandum of understanding sends a clear message that we are standing together with the state of Wisconsin to protect workers and responsible employers and ensure everyone has the opportunity to succeed."

— Dr. David Weil, Administrator, Wage and Hour Division.

"Working with the states is an important tool in ending misclassification. These collaborations allow us to better coordinate compliance with both federal and state laws alike."

— Karen Chaikin, Regional Administrator for the Midwest, Wage and Hour Division