The Nebraska Department of Labor said Friday it is teaming up with the U.S. Department of Labor in an effort to protect workers from being misclassified as independent contractors.
The state agency signed a three-year memorandum of understanding with the U.S. Department of Labor’s Wage and Hour Division.
Labor Commissioner John Albin said Friday that “Nebraska looks forward to a productive partnership with the U.S. Department of Labor as we move forward in our efforts to ensure compliance with existing wage and hour laws.”
The two agencies plan to provide clear and easy-to-access outreach to employees and employers, share information, boost enforcement and coordinate investigations involving misclassification.
Misclassified workers are often denied access to protections and benefits, including unemployment insurance, overtime, minimum wage compensation and health benefits.
Misclassification can also result in lost tax revenue and funding at both the state and national levels for workers’ compensation funds and state unemployment insurance.