Up to 30 percent of employers misclassify their employees as independent contractors, according to national estimates. Misclassification occurs when an employer improperly classifies a worker as an independent contractor instead of an employee. Unfortunately, the consequences can be severe. Some businesses intentionally misclassify workers to try to save on taxes or avoid other costs associated […]
Tag: Independent Contractor
The traditional lines between contractors and employees are fading fast as outsourcing continues to gain popularity. The “gig” economy leads people to pursue freelance careers, working several jobs or maintaining a “side hustle.” Technological advancements allow more flexibility in where, when, and how jobs are completed, further blurring traditional distinctions between contractors and employees. Yet […]
A recent survey by Upwork called “Freelancing in America: 2018” confirms a trend towards workers moving increasingly into freelance and contract work. Today we are joined by Stephane Kasriel, President and CEO of Upwork, to discuss the results.
A continuing point of contention in employment law revolves around who is an employee versus who is an independent contractor. The issue seems to come up often in wage and hour cases and workers’ compensation or unemployment claims.
Recently, the Kentucky Court of Appeals had to decide whether or not a chaplain working for Keeneland Association, Inc., was an independent contractor or an employee. Based on the courts findings, the chaplain could then proceed with a disability discrimination claim against the racecourse.
The U.S. Court of Appeals for the 3rd Circuit (which covers Delaware, New Jersey, and Pennsylvania) recently concluded that the right to control, rather than actual control, is the key factor in differentiating employees from independent contractors under a state wage and hour law.
During the hiring process, a crucial decision for an employer is whether to bring on a new individual as an employee or as a contractor. Granted, in some businesses the choice may be clear, but in others it can require more of a judgment call. This decision is not a small one—it has legal consequences […]
By Myriam Robichaud You’re about to hire an employee. But he has his own business and wants to be an independent contractor. That way, he’ll pay less tax. And it’s easy for you too — you will just have to pay his invoices and won’t have to include him in your employee headcount. But wait. […]
It’s almost an understatement to call misclassification of employees as independent contractors a hot topic. It’s certainly the subject of a growing list of court cases, government agency investigations, and legislative initiatives. Various agencies at both the state and federal level have been in crackdown mode for a few years now, and it’s no wonder: […]
How do you know whether to classify someone as an independent contractor or employee? Is it enough to have a contract in place that specifies that someone is not considered an employee? While most employees hope they have it right, misclassifying employees as independent contractors costs the federal government $2.72 billion every year, according to […]