Tuesday, July 26, 2016

Virginia Joins DOL Misclassification Initiative

PNN: VA Worker Classification

With the increasing scrutiny on worker classification, employers would be wise to review state and federal guidelines to ensure they are in compliance. The U.S. Department of Labor’s (DOL) Wage and Hour Division (WHD) has been engaged in a misclassification initiative in concert with the IRS and state agencies with a focus on information sharing and coordinated enforcement.

The WHD has signed Memorandums of Understanding (MOUs) with 31 states for collaborative enforcement efforts, with Virginia the latest state to join the initiative. On June 16, the Virginia Employment Commission and the WHD signed a MOU related to the classification of workers. The MOU expires on June 16, 2019. Employers can access guidance and resources, and follow developments in state coordination and investigations, on the WHD’s DOL Misclassification Initiative website.

The Virginia Employment Commission explains more on the difference between an employee and an independent contractor, including a list by the IRS of 20 factors to help determine the nature of an employer-employee relationship.

Check back with Pay News Now as we continue to monitor the WHD’s misclassification initiative.