Catherwood LibraryILR School

As a part of the 2011 budget, the Obama administration has proposed that $14 billion in funding go to the US Department of Labor to combat unemployment/insurance fraud, and hire more enforcement workers to keep tabs on improper classification of employees. Some of the funds will also be reserved for workforce development and safety. In the long term, the proposal hopes to eliminate over $300 million in improper payments and employer tax-fraud over the next ten years. Misclassification of employees hurts both the employee (who could be losing out on pay and/or benefits) as well as the federal government, and the proposal therefore suggests increased oversight through a joint effort of both the Treasury and Labor departments. Finally, the proposal sets two year goals for reducing workplace fatalities, and increasing wage-law enforcement.