Misclassification of Employees as Independent Contractors Misclassified employees often are denied access to critical benefits and protections they are entitled to by law, such as the minimum wage, overtime compensation, family and medical leave, unemployment insurance, and safe workplaces.How does employee misclassification affect the federal government?
Employee misclassification 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 workersâ€™ compensation funds. Am I an Employee?: Employment Relationship Under the Fair Labor Standards Act (FLSA) (Fact Sheet #13)What is the wage and Hour Division doing to combat misclassification?
The nomination of Dr. Weil comes within a week after the Biden Administration issued its Fiscal Year 2022 Budget, including an increase of $30 million for the Wage and Hour Division. Labor Secretary Marty Walsh explained that increase will â€śallow the division to aggressively combat worker misclassificationâ€ť by adding 175 enforcement personnel.Who is responsible for determining if an employee is misclassified?
The Wage and Hour Division is responsible for determining whether an employee has been misclassified as an independent contractor and has been denied critical benefits and labor standards protections. Fact Sheet 13: Am I an Employee?: Employment Relationship Under the Fair Labor Standards Act (FLSA) ( Spanish)