Worker classification


Federal, state, and local policymakers should ensure the proper classification of workers. Those who should have access to employee protections and benefits should receive them. 

More states should adopt innovations and step up their enforcement and prosecution of employers that misclassify workers as independent contractors. 

Congress should ensure that the Department of Labor has adequate resources for enforcement of the Fair Labor Standards Act, particularly its provisions dealing with the classification of workers. 

A new classification category for workers in response to the sharing economy is not needed. Policy innovation should focus on improving access to important benefits and protections, including social insurance protections, for all contingent workers. 

Congress should narrow the safe harbor loophole that permits misclassification of employees. Misclassification should be made an express violation of the wage and hour laws. Sufficient funds should be appropriated to the Department of Labor and the Internal Revenue Service (IRS) to enforce labor laws.