More legislation proposed to clamp down on worker misclassification

The ongoing work on worker reclassification has yet another added component. In addition to the Memorandum of Understanding that the USDOL has had 23 states and multiple municipalities agree to, and the pronouncement by Presidential candidate Hillary Clinton that independent contractor misclassification is a prime campaign issue for her, we have two senators who have …

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Will you fail the economic realities test for independent contractors?

Does your organization use independent contractors on a regular basis? If yes, then you are likely to have your relationships challenged. In mid-July the USDOL Wage and Hour Division issued a new interpretation of what being an independent contractor means. They have made no secret of the fact that they are clamping down on the …

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Independent contractor versus employee: “Control” is the issue

In a widely publicized decision in June 2015 the California Labor Commission declared that an individual that drove for Uber was not an independent contractor but was an employee and subsequently owed for mileage, tolls and interest on her car. (Interestingly they did not pay her wages for hours worked, but that was mostly due …

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Future Friday: The future worker is a contractor or is it?

A great deal has been written about the future of work in what has been called the “on-demand” or “gig” economy. The use of independent contractors has been deemed to be the way of the future. It appears however, that not everyone is bought into the concept. Contractors who considered themselves employees have filed lawsuits …

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Avoiding Employment Taxes is not a wise business strategy

All businesses realize that they have to pay attention to the US Department of Labor, in things like the Fair Labor Standards Act and OSHA, and to the EEOC, in areas such as discrimination. Every business also realizes that the IRS also pays attention to their activities. But did you know that the Department of …

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The Noose gets one state tighter on employee misclassification

I have written numerous times on the dangers of employee misclassifications. You can find some of those posts here, here and here. The U.S. Department of Labor has made it very apparent that they see employee misclassification as their prime mission. They have been enlisting state departments of labor in this effort and they just …

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The NLRB creates another test for Independent Contractor Status

If you have been paying attention (here, here and here) the U.S. government has been cracking down on the use of independent contractors. In a big move to restrict “mis-classification” of employees as independent contractors the USDOL and the IRS have been stringent is applying the rules for determining independent contractor status. Now the National …

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Using Independent Contractors just got riskier!

One area of employment law that has always been fraught with danger for employers has been the use of independent contractors. I have written about it before, here and here as examples. The use of independent contractors is scrutinized by several government agencies, both federal and state. The use of ICs is looked at by …

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Two things EVERY US employer should have done by January 1st

  I am hoping that after reading this you say to yourself  “Yep we are good.” If not then now you have an opportunity to make corrections. Payroll changes On October 30, 2013, the Social Security Administration (SSA) told us that the maximum amount of earnings subject to the Social Security payroll tax was going …

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Naked Independent Contractors? Courts say “NO”

  Imagine you are a stripper. Come on, work with me here. Crank up that imagination. Here are the rules you dance by. You are told when to work. You are told what you have to wear or not wear as the case may be. You are told how to stand on stage. You are …

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