Oregon Inks Agreement With U.S. Labor Department to Prevent Worker Misclassifications

The Oregon Bureau of Labor is teaming up with the U.S. Department of Labor in a joint effort to prevent employees in that state from being misclassified as independent contractors.

The US DOL announced the action today. Under the Memorandum of Understanding, the “two 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.”

Mislabeling employees as independent contractors can deny them of basic rights such as minimum wage, overtime and a host of other benefits, DOL said. It also reduces federal and state tax revenues, and prevents contributions to state unemployment insurance and workers’ compensation funds.

Oregon becomes the 29th state to partner up with US DOL in this effort–among them Vermont, Rhode Island, and New York.

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