Kentucky has signed a three-year memorandum of understanding to work with the US Department of Labor to crack down on misclassification of employees as independent contractors.

Kentucky is the 23rd state to sign a memorandum of understanding with the Department of Labor as part of its misclassification initiative. The other states that have signed the memorandum are: Alabama, California, Colorado, Connecticut, Florida, Hawaii, Illinois, Iowa, Louisiana, Maryland, Massachusetts, Minnesota, Missouri, Montana, New Hampshire, New York, Rhode Island, Texas, Utah, Washington, Wisconsin and Wyoming.

“Simply put, misclassification cheats workers, steals from taxpayers, hurts businesses that follow the law, and weakens our economy,” said Kentucky Labor Cabinet Secretary Larry 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.”