President Barack Obama has proposed adding $14 billion to the Labor Department's 2011 budget in an effort to curtail unemployment insurance fraud, and to swell the ranks of officials enforcing proper worker classification, the Wall Street Journal reports.

Under the proposed budget, improper payments could be reduced by $4 billion and employer tax evasion by $300 million over the next 10 years, the Journal writes. Labor Secretary Hilda Solis said in an online chat that the department is seeking to allocate $1.7 billion for worker protection programs, and hire approximately 177 new inspectors.

In addition to the budget increases, the administration is also proposing a joint effort between the Labor and Treasury departments to enforce proper worker classification, according to the paper. Treasury would receive $7 billion over the next 10 years; Labor would receive an additional $25 million to hire 100 enforcement personnel.

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

  • Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.