As part of an effort to crack down on companies that misclassify employees as independent contractors, the U.S. Dept. of Labor is working on a proposed rule that would set additional record-keeping and notification requirements for employers concerning their workers’ status.
Deputy Labor Secretary Seth D. Harris testified during a June 17 Senate Health, Education, Labor and Pensions Committee hearing that some employers deliberately misclassify employees as independent contractors, or “leased” or outsourced workers, and can gain an advantage in the market over law-abiding competitors.