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Division of Labor, IRS renew settlement to fight worker misclassification

December 15, 2022

The US Division of Labor and the Inner Income Service on Thursday renewed a memorandum of understanding and added a streamlined course of for joint referrals and nearer coordination to cease companies from misclassifying staff and denying them their full wages, advantages and protections beneath the regulation.

“We’re decided to establish and resolve labor violations by employers who profit by misclassifying workers as unbiased contractors and deprive them of the protections of the labor requirements legal guidelines we implement,” mentioned Principal Deputy Wage and Hour Administrator Jessica Looman. “Renewing our memorandum of understanding with the IRS strengthens our present partnership by bettering referral processes and data sharing to assist us higher serve the nation’s staff.”

The up to date MOU will assist the division’s Wage and Hour Division share data and work with the IRS to strengthen the enforcement of federal and state legal guidelines that defend staff’ rights.

The Wage and Hour Division and the IRS first beforehand signed an MOU in 2011 to allow each companies to make use of their assets to advertise employer compliance with obligations to pay workers and associated employment taxes.

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