Virginia Signs MOU to Target Misclassification of Independent Contractors

The U.S. Department of Labor's Wage and Hour Division (DOL) and the Virginia Employment Commission (VEC) recently signed a three‐year Memorandum of Understanding regarding the misclassification of independent contractors or other non‐employee statuses.  The VEC will collaborate with DOL by providing enhanced enforcement through joint investigations and the sharing of information.  

Virginia is the 31st state to sign such an MOU which is part of DOL's larger national mission to decrease misclassification of employees as independent contractors. The DOL will be working with the IRS and states that have signed the agreement to increase emphasis on identifying misclassified workers. Employers in Virginia can expect increased audits of independent contractor relationships and a sharing of information between state and federal agencies.