How does your organization classify its workers? Employees…independent contractors…other? Florida employers should expect an increase in investigations from both federal and state enforcement agencies. On January 13, 2015, the U.S. Department of Labor (DOL) and the Florida Department of Revenue signed a memorandum of understanding agreeing to share information and coordinate law enforcement.

The objective is to reduce the misclassification of employees as independent contractors or other nonemployee statuses. The DOL believes that misclassification results in denied access to benefits and protections, such as family and medical leave, overtime pay, minimum wage and unemployment insurance. A copy of the memorandum of understanding can be found at: http://www.dol.gov/whd/workers/misclassification/#stateDetails.

Although the main focus is on the employee/independent contractor status, investigations may also focus on employees being properly classified as salary (exempt from overtime) or hourly. Time may be running out to proactively address any potential issues or resolve any outstanding questions.