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Department of Labor Misclassification Initiative

By MarksNelson on February 26, 2018 in Articles, Entrepreneurial Services, Nicole Eshnaur CPA MBA, CGMA

The Department of Labor (DOL) is serious about enforcing proper employee classification. It has entered into partnerships with 37 states to combat the issue through information sharing and coordinated enforcement. The DOL is concerned about this area because misclassified employees get denied benefits and protections covered by the law, including minimum wages, overtime compensation, family and medical leave, unemployment insurance, and safe workplaces. These misclassifications can also cause tax revenue losses to the federal and state governments.

To view the states partnering with the DOL and to see the agreement click here. Even if your company doesn’t operate in one of the partnering states, consider this another loud warning shot by the federal government regarding its vigilance on this matter.

If you have questions about payroll management or other accounting services, contact Nicole Eshnaur at 816-743-7700.


Nicole Eshnaur

Practice Leader-Accounting Services