DOL Signs Agreement with New Hampshire Department of Labor
The agreement aims to reduce misclassification of employees.
Officials from the U.S. Department of Labor and the New Hampshire DOL have signed a memorandum of understanding with the goal of protecting the rights of employees by preventing their misclassification as something other than employees, such as independent contractors or another non-employee status.
Under this agreement, the agencies will share information and coordinate law enforcement. The memorandum of understanding represents a new effort on the part of the agencies to work together to protect the rights of employees and level the playing field for responsible employers by reducing the practice of misclassification.
"Misclassification of employees deprives workers of rightfully-earned wages and workplace protections and undercuts law-abiding businesses," said U.S. Secretary of Labor Thomas E. Perez, "which is why combating misclassification is one of several important strategies to promote shared prosperity to help ensure that our economy works for everyone."
"Working with the state is an important tool for ending misclassification and other workplace abuses," said Solicitor of Labor M. Patricia Smith. "These collaborations allow us to better coordinate and ensure compliance with both federal and state laws alike."
Business models that attempt to change or obscure the employment relationship through the use of independent contractors may not be used to evade compliance with federal labor law.