Heavy Duty Trucking Logo
MenuMENU
SearchSEARCH

Labor Department Hands Out Money for Misclassified Worker Enforcement

The U.S. Department of Labor has awarded more than $10 million to 19 states to implement or improve worker misclassification detection and enforcement initiatives in unemployment insurance programs.

by Staff
September 22, 2014
Labor Department Hands Out Money for Misclassified Worker Enforcement

 

2 min to read


The U.S. Department of Labor has awarded more than $10 million to 19 states to implement or improve worker misclassification detection and enforcement initiatives in unemployment insurance programs.

The funds will be used to increase the ability of state unemployment insurance tax programs to identify instances where employers improperly classify employees as independent contractors or fail to report the wages paid to workers at all, according to the department.

Ad Loading...

While several states have existing programs designed to reduce worker misclassification, this is the first year that the Labor Department has awarded grants dedicated to this effort.

Among the states receiving money under the program are California, where there have been several cases in which courts have found trucking companies wrongly classified workers as independent contractors rather than employees. In August, the U.S. Ninth Circuit Court of Appeals ruled two classes of individuals working for FedEx Ground in California and Oregon were misclassified as independent contractors instead of employees. 

Under a bonus program, Maryland, New Jersey, Texas and Utah 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 $8.23 million was distributed to 19 states, including these four, in competitive grants.

Ad Loading...

"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.”

More Drivers

Man seated in front of computer with inset of insights generated for a truck driver

Netradyne Intelligence Uses New AI Agents to Automate Response to In-Cab Camera Data

The company called the next-generation in-cab camera safety platform "a fundamental shift from systems that report on what happened to systems that actively drive what should happen next."

Read More →
Illustration of hourglass and trucks backed up to a dock
DriversJune 15, 2026

Why Truck Detention Keeps Costing Fleets Time and Money

A 2024 ATRI study found detention affects nearly 40% of truckload stops and costs the industry more than $15 billion annually. Despite the toll on drivers, fleets, and supply chains, the problem remains stubbornly persistent.

Read More →
Artist rendering of dealership with trucks and trailers parked outside
Equipmentby News/Media ReleaseJune 2, 2026

Prime Inc. to Open $7.9M Flagship Used-Truck Dealership

A new driver-focused facility to sell Prime Inc's used trucks and trailers will be the first purpose-built location in the company's history.

Read More →
Ad Loading...
Thumbnail for podcast episode
Safety & ComplianceMay 28, 2026

Short Takes: Inside K&B’s Truck Safety Tech

Listen to learn how K&B Transportation uses cellphone-blocking technology, speed management systems, weather geofencing, bridge avoidance tools, and more to improve driver safety.

Read More →
Nussbaum driver pay.
Driversby News/Media ReleaseMay 27, 2026

Nussbaum Expands Driver Compensation with Pay Raises, Profit Sharing

Nussbaum Transportation said its latest compensation package could push first-year driver earnings above $90,000 in key hiring markets.

Read More →
Lance Evans, Director of Safety at K&B Transportation.
Safety & ComplianceMay 13, 2026

Listen: Inside Modern Fleet Safety: AI, Cameras & Speed Control at K&B Transportation

Fleet safety is evolving fast—and technology is at the center of it. Learn how a former commercial vehicle enforcement officer turned director of safety at K&B Transportation is embracing real-world safety technology.

Read More →
Ad Loading...
Maverick Transportation Freightliner Cascadia.
Driversby News/Media ReleaseMay 12, 2026

Maverick Announces 2026 Driver Pay Raises

New raises for Maverick Transportation drivers will take effect on May 31, 2026.

Read More →
Alleged Ohio toll evasion truck.
Driversby News/Media ReleaseMay 5, 2026

Illinois Trucker Indicted for Nearly $22,000 in Ohio Turnpike Toll Evasion

Authorities say an Illinois trucker avoided paying tolls for two years, and now faces felony charges, possible prison time, and forfeiture of his Freightliner tractor.

Read More →
Illustration with trojan horse and lock with inside of cargo container in background
Fleet Managementby News/Media ReleaseApril 23, 2026

New Trojan Driver Cargo Theft Scam Bypasses Carrier Vetting Systems

Cargo theft rings plant operatives as drivers inside legitimate, fully vetted carriers, then execute coordinated thefts that look like a traditional straight theft from the outside.

Read More →
Ad Loading...
Female truck driver.
Driversby News/Media ReleaseApril 21, 2026

WIM, Trucker Path Name Top 3 Women-Friendly Truck Stops

ATA’s Women In Motion Council and Trucker Path highlight three truck stops that meet all seven safety-focused criteria and rank highest among female drivers.

Read More →