White House 2013 Budget Targets Employee Misclassification

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Earlier this month, the Obama Administration released its proposed budget for fiscal year 2013. It reveals that New York and New Jersey employers should expect heightened enforcement and regulatory activity, particularly in the area of employee misclassification.

As detailed in the budget proposal, the Department of Labor’s Wage and Hour Division has requested an increase of $3,800,000 increased enforcement related to misclassified workers. It also hopes to hire 35 additional full-time employees. With respect to how those funds will be allocated, the budget justification states: “To combat the problem of misclassification, WHD will explore options for additional memoranda of understanding to increase the coordination and sharing of information between WHD and other stakeholders.”...

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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