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Idaho joins feds’ misclassification program

August 07, 2015

Idaho signed a three-year memorandum of understanding to crack down on the misclassification of employees as independent contractors, the US Department of Labor reported.

Idaho is the 24th state to sign a memorandum of understanding with the Department of Labor as part of its misclassification initiative. Other states signing the memorandum include Alabama, California, Colorado, Connecticut, Florida, Hawaii, Illinois, Iowa, Kentucky, Louisiana, Maryland, Massachusetts, Minnesota, Missouri, Montana, New Hampshire, New York, Rhode Island, Texas, Utah, Washington, Wisconsin and Wyoming.

“Businesses use independent contractors because it often saves them money, but if these same businesses don’t follow the rules, it will cost them a whole lot more than they bargained for,” said Idaho Labor Department Director Kenneth Edmunds. “That's why we're here. The Idaho Department of Labor can help clarify whether a worker is an employee or an independent contractor. If an Idaho business is considering hiring independent contractors, they should give us a call so we can walk them through the rules and make sure they classify their workers and independent contractors properly.”

The US Department of Labor addressed misclassification of employees as independent contractors last month, issuing an “administrator’s interpretation” of how the Fair Labor Standards Act’s definition of “employee” guides the determination of employee or contractor status under the “economic realities” test. 

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