Alaska signed a three-year memorandum of understanding with the US Department of Labor to crack down on the misclassification of employees as independent contractors.
Alaska is the 25th state to sign a memorandum of understanding with the Department of Labor as part of its misclassification initiative. The other states are Alabama, California, Colorado, Connecticut, Florida, Hawaii, Idaho, Illinois, Iowa, Kentucky, Louisiana, Maryland, Massachusetts, Minnesota, Missouri, Montana, New Hampshire, New York, Rhode Island, Texas, Utah, Washington, Wisconsin and Wyoming.
“Misclassification deprives workers of rightfully earned wages and undercuts law-abiding businesses,” said David Weil, US Department of Labor Wage and Hour Division administrator. “This Memorandum of Understanding sends a clear message that we are standing together with the state of Alaska to protect workers and responsible employers and ensure everyone has the opportunity to succeed.”
The US Department of Labor addressed misclassification of employees as independent contractors last month, issuing an “administrator’s interpretation” of how the Fair Labor Standards Act’s definition of “employee” guides the determination of employee or contractor status under the “economic realities” test.