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Maryland wins more than $2 million in Department of Labor grants

Maryland received a roughly $400,000 bonus Monday for its crackdown on businesses that misclassify workers, part of more than $2 million the state won in federal grants.

It is the first time the U.S. Department of Labor has focused funding on efforts to combat worker misclassification. The bonus is a portion of nearly $100 million in grants the U.S. Department of Labor announced Monday.

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About $1.14 million of the funding is to help Maryland adopt new technologies in unemployment insurance programs. The state received another $230,000 to boost programs that help the unemployed back in the workforce.

Roughly $900,000 is to help the state find companies who have failed to report wages or improperly identified workers as independent contractors. Maryland was one of four states to receive a bonus in recognition of its prior efforts in this area.

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Maryland is also leading a $4.5 million multi-state effort to improve the unemployment insurance program. The consortium includes West Virginia and Vermont.

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