The Albuquerque Journal made it onto the IBT blog site with this article!! Good for them.
This practice of misclassification has created substantial problems for affected employees and for the United States Treasury, the Social Security and Medicare funds, and state unemploy-ment and workers’ compensation funds.

As a result, the U.S. Department of Labor and Internal Revenue Service signed a memorandum of understanding in September 2011 so the agencies could work together and share information to reduce employee misclassification, close the tax gap and improve compliance with federal labor laws. While New Mexico is not one of the 13 states that have joined the memorandum of understanding, employers in the state should be concerned about properly classifying the people who work for them.
And more than likely New Mexico has not signed on because of our Republican Governor!

» Misclassification of employees carries penalties | ABQ Journal