August 25, 2015
On Aug. 6, 2015, the DOL announced an MOU with the Idaho DOL aimed at protecting employees’ rights by preventing misclassification. Under the MOU, both agencies may share information and coordinate law enforcement to ensure that workers are properly classified and that employers are not infringing on rights by misclassifying a worker into independent contractor or other non-employee status. Idaho joins 24 other states who have signed similar agreements with the DOL.
Idaho employers should review their employment practices to ensure that individuals are properly classified as either employees or independent contractors. The proper classification is important for purposes of PPACA’s employer mandate, as well as many other federal and state laws and calculation of employment taxes. Because the classification analysis is based on the specific facts and circumstances surrounding an employer’s situation, employers should work with outside counsel to resolve any questions.
DOL News Brief re: Memorandum of Understanding » ID DOL Announcement »