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.
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