The Penalties for Misclassifying Independent Contractors

Recently a company in Louisiana agreed to pay nearly $250,000 in penalties for improperly classifying employees as independent contractors. Specifically, “…an electrical contractor based in New Iberia, Louisiana – has paid $249,278 in back wages to 117 employees” according to the press release from the USDOL. The employer was charged with not paying required overtime …

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Three HR Lessons on a Wednesday morning

When you write five times a week like I do, you become grateful that other write great material that I can point out to you. Today is one of those days where I want to make you aware of some informative and thought=provoking lessons. First up is Todd Lebowitz who warns us that even though …

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Other implications of misclassifying employees

When you read stories about employee misclassification most people have a tendency to think exempt vs nonexempt. Generally this kind of reclassification means an employee will now be eligible for overtime compensation and any back pay that may be due. But what happens when the employee has been classified as an independent contractor vs employee? …

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Future Friday: The dark side of the gig economy

With the projections that 40% of the workforce may be gig workers by 2025 many people are paying attention to the gig economy. With stories if Uber workers making $80,000 or more per year while being free to set their own schedule many people find this attractive. But as with many things there is a …

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The potential consequences of improper classification of independent contractors

There is a minefield awaiting many employers as the strength of the “gig” economy continues to grow. Many employers are interested in taking on workers to do contract work, thus avoiding the expenses that go with having employees. It often seems a simple solution, but as Uber has discovered, those relationship can be fraught with …

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The Naked Truth about Independent Contractors

My guess is that most people picture the world of exotic dancers as a lucrative one. Apparently, that is not a good guess. In a lawsuit filed in December 2016 dancers in a Florida club alleged that the owners had improperly classified them as independent contractors and had not paid them either the minimum wage …

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Independent Contractors and the National Labor Relations Board

We all know that the US Department of Labor and the Internal Revenue Service dislike the use of the Independent Contractor classification. Now the National Labor Relations Board has weighed-in as well and, guess what, they don’t like it either. Improper classification can lead to an unfair labor charge According to Richard J. Reibstein  of …

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The IRS is coming to get you Independent Contractor Scofflaws

I have written a number of times about the dangers of improperly classifying independent contractors. You can find two such posts here and here. The dangers of doing so have increased in early May. More enforcers The IRS announced on May 5th that they have “found” money in their budget to hire between 600 and …

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If you use Independent Contractors are you free from union trouble?

The logical answer to that question would normally be “yes.” Unions are groups of employees that have gathered to provide them the opportunity to deal with wages, hours and working conditions, but if you have been paying attention you know the National Labor Relations Board has been working hard to extend their domain into non-union …

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A new salvo fired in the war on Independent Contractors

In case you have not noticed there is a war of sorts going on over the definition of independent contractors, in particular the case of Uber and Lyft. There are many combatants in this battle. This most recent clash was instigated by the U.S. Chamber of Commerce. Who is involved? On one side we have …

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