Idaho joins feds’ misclassification program

Map of Idaho in the United StatesFrom Staffing Industry Analysts, the announcement that the United States Department of Labor (DOL) signed an agreement to work with the Idaho Department of Labor.  It states:

“Idaho is the 24th state to sign a memorandum of understanding with the Department of Labor as part of its misclassification initiative. Other states signing the memorandum include Alabama, California, Colorado, Connecticut, Florida, Hawaii, Illinois, Iowa, Kentucky, Louisiana, Maryland, Massachusetts, Minnesota, Missouri, Montana, New Hampshire, New York, Rhode Island, Texas, Utah, Washington, Wisconsin and Wyoming.

“Businesses use independent contractors because it often saves them money, but if these same businesses don’t follow the rules, it will cost them a whole lot more than they bargained for,” said Idaho Labor Department Director Kenneth Edmunds. “That’s why we’re here. The Idaho Department of Labor can help clarify whether a worker is an employee or an independent contractor. If an Idaho business is considering hiring independent contractors, they should give us a call so we can walk them through the rules and make sure they classify their workers and independent contractors properly.”…”

Read the full story Idaho joins feds’ misclassification program

In addition to businesses using independent contractors to save money, businesses also use independent contracts to acquire unique skills and special expertise.  Businesses may turn to independent contractors for specific projects that requires skills that are not available to the business on a day-to-day basis.  The Idaho Labor Department Director is accurate in warning businesses to properly classify workers as employees or independent contractors but he should allow for legitimate business use of independent contractors besides just saving money.

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