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North Carolina and Nebraska Join 32 Other States In Agreeing To Partner With U.S. DOL to Investigate Worker Misclassification

Just last month we reported that Pennsylvania had entered into a memorandum of understanding (“MOU”) with the U.S. Department of Labor (“U.S. DOL”), agreeing to share information and conduct joint investigations regarding independent contractor misclassification. Now two more states have joined the U.S. DOL in this effort. In the past week, North Carolina and Nebraska became the latest states to enter into MOUs with the U.S. DOL. David Weil, U.S. Department of Labor Wage and Hour Division Administrator, in discussing these new partnerships, explained that the Wage and Hour Division will continue to “strive toward workplaces with decreased misclassification, increased compliance, and more workers receiving a fair day’s pay for a fair day’s work.”  With Nebraska and North Carolina, 34 states have signed MOUs with the U.S. DOL as part of its Misclassification Initiative.

Time Clock, LaborThe coordinated effort between federal and state enforcement agencies raises the stakes for companies that utilize independent contractors. Companies investigated by either the Nebraska or North Carolina Departments of Labor can now expect those states to share their findings with U.S. DOL, thereby increasing the likelihood of simultaneous, multi-agency investigations. As such, companies in North Carolina and Nebraska, like those in the 32 other states that have signed MOUs with the U.S. DOL, should expect that any misclassification inquiry will automatically expand to include both state and federal agencies, thereby increasing the scrutiny on such companies and the risks associated with a misclassification determination.

© 2020 Proskauer Rose LLP. National Law Review, Volume VI, Number 251


About this Author

Guy Brenner, Labor Attorney, Proskauer Rose, arbitration proceedings Lawyer

Guy Brenner is a partner in the Labor & Employment Law Department and co-head of the Non-Compete & Trade Secrets Group. He has extensive experience representing employers in both single-plaintiff and class action matters, as well as in arbitration proceedings. He also regularly assists federal government contractors with the many special employment-related compliance challenges they face.

Guy represents employers in all aspects of employment and labor litigation and counseling, with an emphasis on non-compete and trade secrets issues,...

Carolyn M Dellatore, Labor Employment Attorney, Proskauer Rose law firm

Carolyn M. Dellatore is an Associate in the Labor & Employment Law Department and a member of the Employment Law Counseling & Training Group, resident in the Newark office. Her practice focuses on the representation and counseling of employers in all areas of employment and labor relations.