Just last month we reported that Pennsylvania had entered into a memorandum of understanding (“MOU”) with the U.S. Department of Labor (“U.S. DOL”), agreeing to share information and conduct joint investigations regarding independent contractor misclassification.  Now two more states have joined the U.S. DOL in this effort. In the past week, North Carolina and Nebraska became the latest states to enter into MOUs with the U.S. DOL.  David Weil, U.S. Department of Labor Wage and Hour Division Administrator, in discussing these new partnerships, explained that the Wage and Hour Division will continue to “strive toward workplaces with decreased misclassification, increased compliance, and more workers receiving a fair day’s pay for a fair day’s work.”  With Nebraska and North Carolina, 34 states have signed MOUs with the U.S. DOL as part of its Misclassification Initiative.

As described in our August 22, 2016 blog post concerning Pennsylvania’s partnership with the U.S. DOL, the coordinated effort between federal and state enforcement agencies raises the stakes for companies that utilize independent contractors.  Companies investigated by either the Nebraska or North Carolina Departments of Labor can now expect those states to share their findings with U.S. DOL, thereby increasing the likelihood of simultaneous, multi-agency investigations.  As such, companies in North Carolina and Nebraska, like those in the 32 other states that have signed MOUs with the U.S. DOL, should expect that any misclassification inquiry will automatically expand to include both state and federal agencies, thereby increasing the scrutiny on such companies and the risks associated with a misclassification determination.

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Photo of Guy Brenner Guy Brenner

Guy Brenner is a partner in the Labor & Employment Law Department and leads the Firm’s Washington, D.C. Labor & Employment practice. He is head of the Government Contractor Compliance Group, co-head of the Counseling, Training & Pay Equity Group and a member…

Guy Brenner is a partner in the Labor & Employment Law Department and leads the Firm’s Washington, D.C. Labor & Employment practice. He is head of the Government Contractor Compliance Group, co-head of the Counseling, Training & Pay Equity Group and a member of the Restrictive Covenants, Trade Secrets & Unfair Competition Group. He has extensive experience representing employers in both single-plaintiff and class action matters, as well as in arbitration proceedings. He also regularly assists federal government contractors with the many special employment-related compliance challenges they face.

Guy represents employers in all aspects of employment and labor litigation and counseling, with an emphasis on non-compete and trade secrets issues, medical and disability leave matters, employee/independent contractor classification issues, and the investigation and litigation of whistleblower claims. He assists employers in negotiating and drafting executive agreements and employee mobility agreements, including non-competition, non-solicit and non-disclosure agreements, and also conducts and supervises internal investigations. He also regularly advises clients on pay equity matters, including privileged pay equity analyses.

Guy advises federal government contractors and subcontractors all aspects of Office of Federal Contract Compliance Programs (OFCCP) regulations and requirements, including preparing affirmative action plans, responding to desk audits, and managing on-site audits.

Guy is a former clerk to Judge Colleen Kollar-Kotelly of the US District Court of the District of Columbia.