EMPLOYMENT LAW: DOL, IRS Sign MOU to Improve Coordination

September 19, 2011

Washington - The Us Department of Labor (DOL) and the Internal Revenue Service (IRS) have met to sign a memorandum of understanding (MOU) which seeks to improve coordination between the two agencies to end employer practice of misclassifying employees in order to avoid providing employment protections, a statement released in its website said.

The statement also said that labor commissioners and other agency leaders representing seven states signed memorandums of understanding with the department's Wage and Hour Division and, in some cases, its Employee Benefits Security Administration, Occupational Safety and Health Administration, Office of Federal Contract Compliance Programs and Office of the Solicitor.

Secretary Solis also announced agreements for the Wage and Hour Division to enter into memorandums of understanding with the state labor agencies of Hawaii, Illinois and Montana, as well as with New York's attorney general. Other signatory states include Connecticut, Maryland, Massachusetts, Minnesota, Missouri, Utah and Washington.

The memorandums of understanding will enable the DOL to share information and coordinate law enforcement with the IRS and participating states in order to level the playing field for law-abiding employers and ensure that employees receive the protections to which they are entitled under federal and state law.