Pennsylvania state and federal labor agencies recently signed a Memorandum of Understanding (MOU) to protect employees against misclassification.
The Pennsylvania Department of Labor and Industry and the US Department of Labor (DOL) Wage and Hour Division signed the three year agreement to curtail the common practice of misclassifying laborers as independent contractors and other non-employee statuses.
Under the three year MOU, the two agencies will work together to provide concerted investigations into reports of misclassification, share resources, and provide access to services to employers, employees and other stakeholders.
The initiatives will be undertaken with the purpose of increasing the enforcement of the misclassified worker law.
“When we share common interests and goals, increased collaboration and communication means we secure a better work environment for all…workers and employers,” said Pennsylvania labor and industry secretary Kathy Manderino. “By educating employees and employers about compliance with all labor laws we enforce, we are helping everyone receive the benefits they deserve.”
Meanwhile the US DOL is also cooperating with the US Internal Revenue Service and 31 other US states to preclude employee misclassification and ensure that workers get the wages and benefits due them in the workplace.
Misclassification is a practice where employers label laborers commonly as independent contractors to circumvent their obligations to provide just wages, benefits, and protections to which regular employees are entitled.
