US Labor Department and Kentucky Labor Cabinet sign
three-year agreement to protect misclassified workers

Participants: U.S. Department of Labor, Kentucky Labor Cabinet

Description: Officials from the U.S. Department of Labor and the Kentucky Labor Cabinet signed a Memorandum of Understanding with the goal of protecting the rights of employees by preventing their misclassification as independent contractors or other non-employee statuses. Under the agreement, both agencies may share information and coordinate law enforcement.

Background: 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. Kentucky joins a growing list of states who are now partners in this effort with the U.S. Labor Department. Alabama, California, Colorado, Connecticut, Florida, Hawaii, Illinois, Iowa, Louisiana, Maryland, Massachusetts, Minnesota, Missouri, Montana, New Hampshire, New York, Rhode Island, Texas, Utah, Washington, Wisconsin and Wyoming agencies have signed similar agreements. More information is available on the Department of Labor's misclassification website at http://www.dol.gov/misclassification/.

Duration: Three years

Quotes: "Misclassification deprives workers of their hard earned wages and undercuts law-abiding businesses. 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."

— David Weil, U.S. Department of Labor Wage and Hour Division Administrator

"Simply put, misclassification cheats workers, steals from taxpayers, hurts businesses that follow the law, and weakens our economy. 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."

— Larry L. Roberts, Kentucky Labor Cabinet Secretary