The US Department of Labor announced it has signed a three-year Memorandum of Understanding with the Oregon Bureau Of Labor to prevent misclassification of workers as independent contractors or other non-employee statuses.
The agencies will provide clear, accurate and easy-to-access outreach to employers, employees and other stakeholders; share resources and enhance enforcement by conducting coordinated investigations and sharing information consistent with applicable law.
Oregon joins 28 other states in working with the DOL and the IRS to combat employee misclassification. Mislabeling employees as independent contractors can deny them of basic rights such as minimum wage, overtime and a host of other benefits. Misclassification also reduces federal and state tax revenues, and prevents contributions to state unemployment insurance and workers’ compensation funds.
“When corporations misclassify their workforce, they make it much more difficult for workers facing wage theft, civil rights abuse or other unfair treatment on the job,” said Brad Avakian, Oregon Bureau of Labor and Industries commissioner. “This agreement will create a new tool to help protect the rights of Oregon workers cheated on the job.”