Core Provisions: This act would amend the Fair Labor Standards Act (FLSA) to strengthen enforcement and penalties of employers who misclassify employees as independent contractors. The bill would impose a maximum fine of $10,000 per violation for an employer who “repeatedly or willfully” failed to accurately classify a worker. Where an employer’s misclassification accompanied violations under the FLSA’s maximum hours or minimum wage requirements, a worker could recover double his or her liquidated damages.

An employer would also have to keep records of workers’ employment classification and notify those classified as “non-employees” in writing of (1) their classification, (2) that their rights to “wage, hour, and other labor protections” depend upon proper classification, and (3) directing them to the Department of Labor if they suspect they have been misclassified or need further information.

The legislation would require state unemployment insurance agencies to conduct auditing and investigative programs to detect employers that misclassify or fail to properly report compensation to workers with the effect of excluding employees from unemployment compensation coverage. The Secretary of Labor would also ensure that at least 25 percent of the Wage and Hour Division’s audits would focus on potential classification violations, especially in industries with frequent incidence of misclassifying workers.

Status: H.R. 6111 was introduced by Rep. Andrews (D-NJ) on May 21, 2008, and referred to the House Committees on Education and Labor and Ways and Means.