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Joining forces, the U.S. Department of Labor (DOL) and the Internal Revenue Service (IRS) recently announced a Memorandum of Understanding (MOU) to coordinate efforts to resolve employer practices of misclassifying employees as independent contractors. In addition, authorities from 11 states, including New York, Illinois and Washington, have either agreed to the MOU or have agreed to execute separate MOUs with the DOL’s Wage and Hour Division (WHD). At a signing ceremony hosted by the DOL, Secretary of Labor Hilda Solis stated the “message” of their coordinated effort was that these agencies were “standing united to end the practice of misclassifying employees.”

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