Officials of the U.S. Department of Labor's Wage and Hour Division, the New York State Labor Department, and the New York State Attorney General Office have signed memoranda of understanding to protect the rights of employees by preventing their misclassification as independent contractors or other nonemployee statuses.
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Get Your Report Now!The memoranda of understanding represent a new effort on the part of the three agencies to work together to protect the rights of employees and level the playing field for responsible employers by reducing the practice of misclassification. The New York State Labor Department and New York State Attorney General's Office are the latest state agencies to partner with the Labor Department.
In the last 2 years, the Wage and Hour Division has secured over $18.2 million in back wages for more than 19,000 workers where the primary reason for minimum wage or overtime violations under the federal Fair Labor Standards Act was that workers were not treated or classified as employees. This represents a 97 percent increase in back wages following the implementation of these agreements.
"Working with the states is an important tool in ending misclassification," said M. Patricia Smith, U.S. Solicitor of Labor. "These collaborations allow us to better coordinate and ensure compliance with both federal and state laws alike."
"Misclassification deprives workers of rightfully-earned wages and undercuts law-abiding businesses," said Laura Fortman, the principal deputy administrator of the Wage and Hour Division. "These memoranda of understanding send a clear message that we are standing together with the State of New York to protect workers and responsible employers and ensure everyone has the opportunity to succeed."
"This partnership with the U.S. Department of Labor will help New York continue our work of aggressively enforcing the labor laws and ensuring a level playing field for employers who play by the rules. Sharing information and cooperating in investigations will help protect the rights of New York's workforce, and will lead to more effective enforcement and greater compliance by employers," said Terri Gerstein, Labor Bureau Chief for New York Attorney General Eric T. Schneiderman.
The New York State Attorney General's office brings select cases to enforce the state's labor laws, including both civil and criminal cases. For more information, please visit the Labor Bureau's website at http://www.ag.ny.gov/bureau/labor-bureau.