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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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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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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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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Future Friday: The Independent Contractor will NOT rule by 2020

I and numerous other people have written about the “gig economy”, “free agent nation” or whatever you want to call it, numerous times. As we get into 2016, and 2020 is a mere four years away, the likelihood of there being a major shift in the direction of a high percentage of independent contractors seems …

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IRS delays the ACA Reporting

In a move sure to brighten the outlook for many employers, the IRS has delayed the necessity of supplying forms to individuals and the IRS until March or later. The IRS said that in their announcement “that some employers, insurers, and other providers of minimum essential coverage need additional time to adapt and implement systems …

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Do you know the penalties for improperly classifying employees as Independent Contractors?

I gave a presentation the other day, on behalf of ComplyRight,  on how companies can incorrectly classify workers as independent contractors rather than employees. Many companies think that using independent contractors is a prudent way of doing business. It reduces an employer’s liabilities, keeps costs down and provides greater flexibility than might be achieved by …

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How did reclassification cost workers their jobs?

As governments increase the pressure on companies to insure that workers are properly classified as employees and not independent contractors there is bound to be some casualties in the process. The company Zirtual was just such a casualty. Reclassification With the US Department of Labor’s “Memorandum of Understanding” they are signing with willing states and …

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