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 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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Future Friday: What about the “dependent contractor?”

There is a great deal of controversy about the independent contractor and the gig economy. I have written about it a lot, as have many others. People are floating numerous ideas about how to utilize workers beyond the employee versus independent contractor. One such idea has been labeled as the dependent contractor. Dependent The question …

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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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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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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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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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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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