Misclassification of Employees as Independent Contractors

Misclassified employees often are denied access to critical benefits and protections they are entitled to by law, such as the minimum wage, overtime compensation, family and medical leave, unemployment insurance, and safe workplaces. Employee misclassification generates substantial losses to the federal government and state governments in the form of lower tax revenues, as well as to state unemployment insurance and workers’ compensation funds.

Resources

Pay and Misclassification

• Get the Facts on Misclassification Under the FLSA (PDF)
• Fact Sheets:
  • Am I an Employee?: Employment Relationship Under the Fair Labor Standards Act (FLSA) (Fact Sheet #13)
  • Coverage Under the Fair Labor Standards Act (Fact Sheet #14)
• Compliance Assistance Page – Fair Labor Standards Act
• Elaws: Independent Contractors
• Know Your Rights Video Series: Misclassification as an Independent Contractor
• WHD Press Releases about employee Misclassification as Independent Contractors

Health and Safety Concerns on the Job

• Protecting Temporary Workers Web Pages
• Nail Salon Worker Rights
• Stay Healthy and Safe While Giving Manicures and Pedicures: A Guide for Nail Salon Workers (page 13 covers employee vs. independent contractor issues in nail salons)
• Training Requirements for Independent Contractors, Mine Safety and Health Division

Unemployment Insurance and Misclassification

• Comparison of State UI Laws - Listing of Unemployment Insurance Coverage Tests
• General Information - Unemployment Insurance Taxes
• Directory of State Unemployment Insurance Tax Offices
• Directory of State Unemployment Insurance Claims Offices
• Grants to State Unemployment Insurance Tax Programs for Misclassification, Detection and Enforcement:
  • $10.2M Awarded to Fund Worker Misclassification Detection, Enforcement Activities
  • More than $39M in Grants Awarded to Improve Performance, Integrity of State Unemployment Insurance Programs and Reduce Worker Misclassification
• Independent Contractors: Prevalence and Implications for Unemployment Insurance Programs

Anti-Retaliation/Anti-Discrimination Rights for Workers

• Know Your Rights
• Whistleblower Home Page (About Us, How to File a Complaint, etc.)

Federal Taxes and Misclassification

• IRS Independent Contractor or Employee? (Publication 1779)

Health Care and Retirement Benefits - Information on Employer-Sponsored Benefit Plans

Information on Federal Laws Related to Employment Based Group Health Plans

• For Workers
• For Employers and Advisers

Information on Federal Laws Related to Private Sector Employer- Sponsored Retirement Programs

• For Workers
• For Employers and Advisers

Resources for State and Federal Governments

• Memoranda of Understanding with Federal and State Agencies on Misclassification
  • IRS –DOL MOU
  • State MOUs with the Wage and Hour Division
• IRS Questionable Employment Tax Practices and IRS MOUs with federal and state agencies

Other Resources/Information

• Studies on misclassification by government agencies
  • Annual Report of the White House Task Force on the Middle Class, February 2010
  • Government Accountability Office report on Employee Misclassification
• DOL Misclassification Blog Posts
• Misclassification Press Releases
  • ETA Press Release: $10.2 M awarded to State Unemployment Insurance Tax Programs to fund worker misclassification detection and enforcement...

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