DOL Officials Discuss Misclassification Enforcement, Minimum Wage During Workplace Panel

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From Littler — “Labor Secretary Thomas Perez claimed increasing the federal minimum wage is the “centerpiece” of the President’s economic agenda. Perez noted also that the agency’s proposed rule to revise the Fair Labor Standards Act’s overtime exemption for “white collar” employees should be ready by next year.  As part of this proposal, the agency will seek comment on what the effective overtime threshold should be, particularly for managerial employees. Perez also discussed what he considers not worker misclassification but rather “workplace fraud,” and said many individuals are improperly classified as independent contractors instead of employees.

Wage and Hour Administrator David Weil picked up on Perez’s workplace fraud theme, claiming that the “fissuring” of today’s workplace is responsible for many current employment ills. Weil said outsourcing, subcontracting, and misclassification are becoming increasingly common, and contribute to potential wage theft. He singled out the retail and restaurant industries as being particularly vulnerable…”

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