New Department of Labor Announcement
Today, the Department of Labor (DOL) announced that it reached a memorandum of understanding with the Florida Department of Revenue to combat the misclassification of employees. I am not surprised that the DOL decided to step, as I have seen a significant number of employees who were misclassified as independent contractors down here in South Florida.
Besides the obvious problems that can arise with not paying overtime wages or minimum wages to those classified as Independent Contractors, misclassification also results in businesses who pay less than their fare share to the workers’ compensation carrier, pay less in unemployment to the State of Florida, and pay less taxes to the government. This type of misclassification also can a business an unfair advantage over the businesses who properly classify and pay their workers as employees (and provide them with the proper benefits required to be provided to employees).