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DOL Budget Prioritizes Independent Contractor Misclassification

President Obama's budget is dominating headlines this week.  The administration's budget proposal provides employers with insight into the Department of Labor's enforcement priorities in the upcoming fiscal year.

The Department of Labor's budget proposal seeks an additional $15 million and 107 new employees for a "misclassification initiative."  The goal of the initiative is to "enforce labor violations that result from the misclassification of employees as 'independent contractors' and to deter such violations in the future."  In light of the Department of Labor's increased focus on misclassification, now is the time for employers to review their independent contractor practices and agreements.

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