9 August 2023
TOPEKA (KSNT) – On Wednesday, Governor Laura Kelly and the Kansas Department of Labor (KDOL) announced the KDOL Insurance Tax and Employer division is hiring more auditors to prevent, detect and investigate cases of fraud, according to a press release from the Office of the Governor.
Worker misclassification is when an employer incorrectly classifies workers as independent contractors rather than employees. The intentional misclassification of workers constitutes as tax and insurance evasion. Misclassified workers lose protection and rights that would be entitled to traditional employees, according to the press release.
“Worker misclassification is an issue of fairness to workers, who deserve benefits they’ve rightfully earned, and to the honest businesses that do right by their employees,” Kelly said. “That’s why my administration is taking these steps to protect hardworking Kansans and ensure every business follows the law.”
According to the press release, misclassified workers lose entitlement to:
minimum wage requirements
overtime pay
workers compensation
unemployment insurance
anti-discrimination laws
“Worker misclassification can lead to unfair competition among law-abiding businesses. A business that attempts to defraud the system cheats workers of vital benefits and adversely affects other businesses,” Labor Secretary Amber Shultz said.
KODL will work to raise awareness and educate the public through social media, according to the release.
Employers can refer to KDOL’s Employer Toolkit by clicking here or by calling 785-296-5027. Employees with concerns or tips regarding misclassification can report to [email protected] or by calling 785-296-5027.