---
title: IRS and Department of Labor align to enforce proper hiring practices
description: The Internal Revenue Service was recently called upon by the U.S. Department of Labor to ensure businesses don't illegally reclassify full-time employees as contract workers to avoid paying for employ
---

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September 20, 2011

# IRS and Department of Labor align to enforce proper hiring practices

Written by: [Innovative Employee Solutions](https://blog.innovativeemployeesolutions.com/ies-blog-nb-24/author/innovativeemployeesolutions)

The Internal Revenue Service was recently called upon by the U.S. Department of Labor to ensure businesses don't illegally reclassify full-time employees as [contract workers](http://innovativeemployeesolutions.com/wp/contract-workers/) to avoid paying for employment protections.

This alliance will serve to improve departmental efforts to reduce this practice, as labeling  workers as independent contractors strips them of basic employee rights such as insurance and salaried wages.

Furthermore, seven states - Connecticut, Maryland, Massachusetts, Minnesota, Missouri, Utah and Washington - signed memorandums allowing the coordination of information between the DOL and the IRS to "level the playing field" for law-abiding employers who haven't attempted to sidestep the law.

"We're here today to sign a series of agreements that together send a coordinated message: We're standing united to end the practice of misclassifying employees," said Secretary of Labor Hilda L. Solis. "We are taking important steps toward making sure that the American dream is still available for all employees and responsible employers alike."

TLNT recommends specific questions to consider when determining an employee's status. These include whether or not the individual's services are integral to an organization, if he or she has any significant investment in facilities or equipment and if the employer/employee relationship is permanent or for a determinable amount of time.  

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