WASHINGTON, D.C. – The U.S. Department of Labor awarded $500,000 to Indiana as part of a nationwide program aimed to improve worker misclassification detection and enforcement initiatives in unemployment insurance programs.
In total, $10,225,183 was awarded to 19 states.
“This is one of many actions the department is taking to help level the playing field for employers while ensuring workers receive appropriate rights and protections,” said U.S. Secretary of Labor Thomas E. Perez. “Today’s federal grant awards will enhance states’ ability to detect incidents of worker misclassification and protect the integrity of state unemployment insurance trust funds.”
The funds will be used to increase the ability of state tax programs to identify instances where employers improperly classify employees as independent contractors or fail to report the wages paid to workers at all. The states that were selected to receive these grants will use the funds for a variety of improvements and initiatives, including enhancing employer audit programs and conducting employer education initiatives.
Under an innovative, “high-performance bonus” program, four states will receive a share of $2 million in additional grant funds due to their high performance or most improved performance in detecting incidents of worker misclassification. The remaining $8,225,183 was distributed to 19 states in competitive grants.
The maximum grant available under the competitive grant award process was $500,000.
