Cornhusker State Joins Misclassification Fight, Inks Memoradum of Understanding With US DOL

Now add Nebraska to the list of states that is teaming up with the U.S. Department of Labor to combat the misclassification of workers as independent contractors rather than as employees.

DOL announced last week that the Nebraska Department of Labor signed a three-year Memorandum of Understanding intended to protect employees’ rights by preventing their misclassification as independent contractors or other non-employee statuses.

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.

Labeling employees as something they are not – such as independent contractors – can deny them basic rights such as minimum wage, overtime and other benefits. Misclassification also improperly lowers tax revenues to federal and state governments, and creates losses for state unemployment insurance and workers’ compensation funds.

Nebraska is about the reddest of red states politically. So maybe there is reason to hope that the Republicans and Democrats can unite around leveling the playing field so workers receive their due as the nation marks Labor Day

More information on misclassification and the effort are available at http://www.dol.gov/misclassification/.

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