The Obama administration and 11 states will join an effort to crack down on companies such as homebuilders, hotels and restaurants that classify employees as independent contractors to avoid paying overtime.
The Labor Department and states agreed to share information filed by companies as the department finds and prosecutes companies that misidentify workers in order to skirt paying unemployment benefits or federal taxes, according to Mike Wald, an agency spokesman.
Misclassifying employees “makes it harder, especially for low-wage workers, to put food on the table,” Labor Secretary Hilda Solis said today on a conference call with reporters.
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