The Department of Labor is allocating $25 million of its generous budget to launch a joint initiative with the Treasury Department
aimed at cracking down on companies who misclassify workers as independent contractors. The campaign will put 100 new investigators to the task. The government is irritated at the loss of tax revenue, and the unions by the loss of potential union dues. Big Labor claims that up to 30 percent of workers are misclassified, and will also no doubt use the threat of increased scrutiny in corporate campaigns designed to pressure companies into neutrality agreements. Adding to the sting, Democrats in both the House and the Senate are introducing bills designed to strengthen rules regarding independent contractors and increasing the penalties for companies that fail to get it right. It would be a prudent time for businesses to scrutinize their pay practices, and do all they can to comply with the regulations.
