Pennsylvania is the latest state to join the U.S. Department of Labor Misclassification Initiative. As stated in the Memorandum of Understanding, the goal is to provide “clear, accurate, and easy-to-access outreach to employers, employees, and other stakeholders, and of sharing resources and enhancing enforcement by conducting coordinated investigations and sharing information consistent with applicable law.” The Commonwealth of Pennsylvania Department of Labor and Industry will work with the U.S. Department of Labor to ensure their agencies use resources effectively and efficiently to combat worker misclassification. In the last few years, many employees have been misclassified as independent contractors by employers trying to lower payroll costs. Misclassification of employees as independent contractors can deprive employees from workplace protections and employment benefits to which they are legally entitled to. The agreement is scheduled to expire on August 4, 2019. If mutual parties agree, the agreement may be modified and/or renewed.
For more information on Pennsylvania and the U.S. Department of Labor agreement, visit the U.S. Department of Labor website.