The Kansas Department of Labor (KDOL) has designated March 2025 as Fraud Awareness Month, focusing on worker misclassification. KDOL’s Unemployment Insurance Tax/Employer division is committed to preventing, detecting, and investigating misclassification to ensure workers receive the legal protections and benefits they are entitled to.

Misclassification happens when an employer incorrectly classifies an employee as an independent contractor, which denies workers essential rights, including minimum wage, overtime pay, workers’ compensation, unemployment insurance, and anti-discrimination protections.

Employers who misclassify workers, whether on purpose or by mistake, may face significant penalties and fines from KDOL and the Kansas Department of Revenue. KDOL encourages both businesses and workers to understand the legal distinctions between employees and independent contractors to ensure compliance with state and federal laws.

“Ensuring fair labor practices is vital for a strong workforce and economy,” Secretary Shultz added. “Employers who follow the rules protect their workers and maintain a level playing field in their industries.”

To report suspected worker misclassification, visit dol.ks.gov/unemployment/report-fraud and select Worker Misclassification and follow the instructions.