DOL, IRS, Seven States Team Up To End Employee Misclassification

Labor Secretary Hilda Solis, representatives from seven states, and the Internal Revenue Service signed a memo of understanding last week that explains the agencies will team up to end employee misclassification, or the process of calling a full-time employee a freelancer in order that the employer can avoid paying taxes and benefits.

“We’re standing united to end the practice of misclassifying employees,” said Secretary Solis in a statement. “We are taking important steps toward making sure that the American dream is still available for all employees and responsible employers alike.”

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