The U.S. Department of Labor (DOL) has opened a new front in its war to crack down on employers that misclassify workers as independent contractors: It’s helping states scour unemployment insurance records for evidence of misclassification.
DOL grants totaling more than $10 million have been awarded to beef up employer misclassification audit programs in 19 states.
A “high-performance bonus” program will funnel $2 million to the four states that rack up the greatest increases in detection of worker misclassification.
Labor Secretary Thomas Perez said the grants are also intended to “protect the integrity of state unemployment insurance trust funds.”
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