TOPEKA, KS – The Kansas Department of Labor (KDOL) is recognizing March 2025 as Fraud Awareness Month, with a focus on the misclassification of workers. KDOL’s Unemployment Insurance Tax/Employer division is committed to preventing, detecting and investigating worker misclassification to ensure employees receive the protections and benefits they are entitled to under the law.
Worker misclassification occurs when an employer incorrectly classifies an employee as an independent contractor rather than an employee. This practice denies workers essential rights, including minimum wage requirements, overtime pay, workers’ compensation, unemployment insurance and protection under anti-discrimination laws.
“Worker misclassification is not just an administrative error—it is a serious issue that deprives workers of critical protections and places law-abiding businesses at a disadvantage,” said Kansas Labor Secretary Amber Shultz. “Intentional misclassification constitutes tax and insurance evasion, and KDOL will continue working diligently to hold non-compliant employers accountable.”
Employers who misclassify workers—whether unintentionally or intentionally—may face significant penalties and fines from KDOL and the Kansas Department of Revenue. The agency encourages workers and businesses 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. Please visit dol.ks.gov/unemployment/report-fraud and select Worker Misclassification and follow the instructions.
For more information on worker classification, visit: https://www.dol.ks.gov/home/showpublisheddocument/328/638726207439400000 or the IRS website:
