California Attorney General Kamala D. Harris signed a cooperative agreement to crack down on worker misclassification and other illegal labor practices with the US Department of Labor’s Wage and Hour Division (WHD). The memorandum of understanding signed will facilitate the sharing of information and enhance enforcement of labor violations.
California had previously partnered with the WHD to fight worker misclassification through the state’s Labor and Workforce Development Agency.
“This is yet another indication of how seriously companies need to take independent contractor compliance. With technology and modes of engagement evolving at such a rapid pace, and governments scrutinizing how companies engage the file component of the workforce the fact that we are seeing only increased oversight and enforcement should come as a surprise to no one,” said Bryan Peña, VP of Staffing Industry Analysts’ contingent workforce strategies and research. “The fact the attorney general is getting involved reinforces the value of a well-thought-out compliance process.”
The agreement will enable both agencies’ share information and resources in investigating and prosecuting cases of wage theft and other labor violations.
“As host to one of the largest underground economies and immigrant populations in the United States, it makes sense that we begin our quest to combat wage theft,” said Ruben Rosalez, regional administrator for the western region for the US Department of Labor. “This partnership with the State AG’s office is long overdue.”
The collaborative agreement will work to combat employee misclassification as well as violations of minimum wage and overtime laws.