Taking Action Against Fraud: Raising Awareness to Keep Kansas Employees Safe

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: http://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-self-employed-or
employee.