As I’ve mentioned in earlier posts, the Department of Labor has stepped up enforcement of the rules distinguishing between independent contractors and employees. Now, the Department of Labor has targeted certain industries for worker misclassification investigations. These industries include:
A quick search of Department of Labor settlements shows that this not an idle threat.
- A Minneapolis general contractor agreed to pay $430,000, even though the wage underpayments resulted from the practices of subcontractors.
- A Cleveland general contractor agreed to pay $212,000 for back wages and was debarred for three years.
- A Pennsylvania landscaping company agreed to pay $78,000 after failing to pay overtime.
As we gear up for the landscaping and construction season, now is the time to review your pay practices and policies.
- Are your employees classified correctly?
- Are they really independent contractors?
- Are you calculating overtime correctly?
Take a look now because it’s always better to implement proper pay practices before the Department of Labor stops by.