We've heard it before - workers misclassified as independent contractors. When this happens workers are denied the fair labor standards, health and safety protections and the workers' comp benefits they rightfully deserve. Legislation has just been introduced in the Senate which would make sure workers' are protected. The act, termed The Employee Misclassification Prevention Act, would amend the Fair Labor Standards Act of 1938.
The new legislation aims to reduce the number of misclassification violations by:
* Ensuring that employers keep records that reflect the accurate status of each
worker as an employee or non-employee and clarifying that employers violate the Fair Labor Standards Act when they misclassify workers.
* Increasing penalties on employers who misclassify their employees and are found to have violated employees' overtime or minimum wage
rights.
* Requiring employers to notify workers of their classification as an employee or non-employee.
* Creating an "
employee rights web site" to inform workers about their federal and state wage and hour rights.
* Providing protections to workers who are discriminated against because they have sought to be accurately classified.
The Teamsters Union announced its support of the new bill, as well as other efforts in the Obama administration to crack down on
employee misclassification.