US Department of Labor signs agreement with Hawaii's Department of Labor and Industrial Relations to protect workers from misclassification

Participants: U.S. Department of Labor's Wage and Hour Division and the State of Hawaii's Department of Labor and Industrial Relations

Partnership description: The U.S. Department of Labor's Wage and Hour Division and Hawaii's Department of Labor and Industrial Relations have signed a three-year Memorandum of Understanding intended to protect employees' rights by preventing their misclassification as independent contractors or other non-employee statuses. The two agencies will provide clear, accurate, and easy-to-access outreach to employers, employees, and other stakeholders, share resources, and enhance enforcement by conducting joint investigations and sharing information consistent with applicable law.

Background: The Wage and Hour Division is working with the IRS and 25 other states to combat employee misclassification and to ensure that workers get the wages, benefits, and protections to which they are entitled. Labeling employees as something they are not, such as independent contractors, can deny them of basic rights such as minimum wage, overtime, and a host of other benefits. Misclassification also generates substantial losses to the federal government and state governments in the form of lower tax revenues, as well as to state unemployment insurance and workers' compensation funds.

More information on misclassification and the effort are available at http://www.dol.gov/misclassification/.

Quotes: "The Wage and Hour Division continues to attack this problem head on through a combination of a robust education and outreach campaign, and nationwide, data-driven strategic enforcement across industries," said David Weil, administrator of the Wage and Hour Division. "Our goal is always to strive toward workplaces with decreased misclassification, increased compliance, and more workers receiving a fair day's pay for a fair day's work."

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

"The practice of misclassification hurts workers, presents an unfair disadvantage to law-abiding, compliant businesses, and deprives our communities of valuable resources. This agreement will help tackle this and other areas of common interest effectively and efficiently."

Linda Chu Takayama, State of Hawaii Department of Labor and Industrial Relations Director