Some workers incorrectly labeled as independent contractors
FRANKFORT, Ky. (July 15, 2015) — The Kentucky Labor Cabinet is partnering with the U.S. Department of Labor to combat the misclassification of employees as independent contractors. Under a memorandum of understanding, both agencies may share information and coordinate law enforcement.
“Simply put, misclassification cheats workers, steals from taxpayers, hurts businesses that follow the law, and weakens our economy,” said Labor Cabinet Secretary Larry L. Roberts. “Although legitimate independent contractors are an important part of our economy, the misclassification of employees presents a serious problem that is happening at public and private projects all over the commonwealth.”
Employers that misclassify employees as independent contractors cut costs by not paying payroll taxes, Social Security and workers’ compensation coverage. Misclassification reduces an employer’s labor and related costs, thereby allowing a business to underbid competitors.
Workers who suspect they are victims of misclassification can fill out a wage and hour complaint form online at www.labor.ky.gov.
For more information about federal wage laws, or to file a complaint with the U.S. Department of Labor, call the Wage and Hour Division’s toll-free helpline at 866-4US-WAGE (487-9243).
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