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 …

Read moreThe Penalties for Misclassifying Independent Contractors

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? …

Read moreOther implications of misclassifying employees

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 …

Read moreThe potential consequences of improper classification of independent contractors

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 …

Read moreThe Naked Truth about Independent Contractors

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 …

Read moreFuture Friday: The Independent Contractor will NOT rule by 2020

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 …

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

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 …

Read moreHow did reclassification cost workers their jobs?

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 …

Read moreFuture Friday: The future worker is a contractor or is it?

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 …

Read moreThe NLRB creates another test for Independent Contractor Status

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 …

Read moreUsing Independent Contractors just got riskier!

Pin It on Pinterest