The DOL's Wage and Hour Division announced on February 9, 2012 that its deputy administrator and the California Secretary of Labor entered into a memorandum of understanding on the improper classification of employees as independent contractors. The DOL and the state of California will partner to reduce employee misclassification to protect employees' rights to benefits and protections such as family and medical leave, overtime pay, minimum wage pay and unemployment insurance. California is the 12th state to partner with the DOL, following Colorado, Connecticut, Hawaii, Illinois, Maryland, Massachusetts, Minnesota, Missouri, Montana, Utah and Washington.

For more information on classifying workers as independent contractors, see Practice Note, Independent Contractor Classification.