STATEHOUSE- The Indiana Department of Labor (DOL) held their first, in a series of meetings today to discuss the process for classifying workers. Rep. Bill Davis (R-Portland) attended the meeting and shared his views to the committee. "As a former small business owner, I am here to make sure we are taking proactive measures," Rep. Davis said. "There is a fine line between educating employers about the classification of employees and helping small businesses comply with any new regulations." The classification of workers is a process by which the DOL uses a checklist to determine if someone is an independent contractor or an employee. Depending on the workers status, employers must pay premiums towards the Unemployment Insurance Trust Fund as well as offer health insurance plans and other benefits. Employers do not have to offer these things to independent contractors. "Some employers try to cheat the system by classifying people who are full time workers as independent contractors," Rep. Davis said. "Therefore, the employer won't have to pay unemployment premiums or offer benefits. These employers should be caught and punished to the fullest extent." In 2006, Indiana ranked first in the nation by the United States DOL for identifying misclassified workers, second in 2007 and fifth in 2008. In 2009, the Indiana Department of Workforce Development was asked to conduct a seminar at the national conference teaching other states how to identify misclassified workers. "As you can see the Indiana DOL does a wonderful job in identifying misclassified workers," Rep. Davis said. "So it is my hope that legislators do not try to create laws that interfere with DOL doing their job. We need to make sure we are continuing to help the Indiana economy by attracting and growing businesses." The DOL will hold their next meeting on April 28 at 1:00 p.m. in the State Government South Building in Indianapolis. |
