September 30, 2020

Volume X, Number 274

September 30, 2020

Subscribe to Latest Legal News and Analysis

September 29, 2020

Subscribe to Latest Legal News and Analysis

September 28, 2020

Subscribe to Latest Legal News and Analysis

Pennsylvania Department of Labor and U.S. DOL Agree to Work Together Against Misclassification

The U.S. Department of Labor (“U.S. DOL”) and the  Pennsylvania Department of Labor and Industry recently signed a memorandum of understanding to share information and conduct joint investigations regarding independent contractor misclassification.  The agreement is part of the U.S. DOL’s Misclassification Initiative, the stated goal of which is to “combat employee misclassification and to ensure that workers get the wages, benefits, and protections to which they are entitled.”  Pennsylvania is the 32nd state to sign a memorandum of understanding with the Department of Labor as part of its misclassification initiative. The others are Alabama, Alaska, Arkansas, California, Colorado, Connecticut, Florida, Hawaii, Idaho, Illinois, Iowa, Kentucky, Louisiana, Maryland, Massachusetts, Minnesota, Missouri, Montana, New Hampshire, New Mexico, New York, Oregon, Rhode Island, South Dakota, Texas, Utah, Vermont, Virginia, Washington, Wisconsin and Wyoming.

The coordinated effort between the U.S. DOL and participating states raises the stakes for companies that utilize independent contractors.  In the past, a company in Pennsylvania might pay a single fine to a state agency for not making proper unemployment insurance payments due to misclassification of its workers.  Under the new agreement, Pennsylvania will now share this information with the U.S. DOL, which may opt to cooperate in the underlying investigation or conduct a separate investigation.  As such, companies in Pennsylvania, like those in the 31 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 235

TRENDING LEGAL ANALYSIS


About this Author

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

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,...

202-416-6830
Carolyn M Dellatore, Labor Employment Attorney, Proskauer Rose law firm
Associate

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.

973-274-6032