U.S. DOL Issues Administrator’s Interpretation on Employee Misclassification
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The misclassification of workers as independent contractors has been an ongoing challenge for employers and workers alike. Due to the fact that contractors lack many workplace protections—such as minimum wage or workers’ compensation rights—and that misclassification results in lower tax revenues for the government, the U.S. Dept. of Labor (“DOL”) recently released Administrator’s Interpretation No. 2015-1. This interpretation, published on July 15, 2015, provides guidance on the existing rules for classifying employees.