Tag: Independent Contractor

Be “sure” before classifying a worker as an independent contractor

Never base a worker classification decision on uncertainty, according to attorney Christine Walters. Walters, a Maryland HR consultant presenting at the Society for Human Resource Management’s legislative conference in Washington, D.C., March 5,  ticked off the many reasons employers might be inclined to classify a worker as an independent contractor. Among them: to avoid paying […]

US Labor Department, Colorado Department of Labor and Employment sign agreement to reduce misclassification of employees as independent contractors

Nancy J. Leppink, deputy administrator of the U.S. Department of Labor’s Wage and Hour Division, and Ellen Golombek, executive director of the Colorado Department of Labor and Employment, signed a memorandum of understanding Dec. 5 regarding the improper classification of employees as independent contractors. “This memorandum of understanding helps us send a message: We’re standing […]

Independent Contractor vs. Employee

by Gary S. Fealk Businesses often find it advantageous to hire independent contractors to perform a variety of duties in place of employees. Using independent contractors can reduce expenses for payroll taxes and benefits, avoid the impact of laws like the Fair Labor Standards Act (FLSA) and the Family and Medical Leave Act (FMLA), and […]

DOL, IRS, Congress Want to ‘Help’ Workers Who Think They Are Misclassified as Independent Contractors

by Vaughn Burkholder and Tara Eberline What do the U.S. Department of Labor (DOL), the Internal Revenue Service (IRS), and Congress have in common? Sound like a setup for a bad joke? The punch line is that each of those federal entities has announced its intention to focus on employers’ misclassification of employees as independent […]

Independent Contractors Considered Workers for Health and Safety Purposes

By Rosalind Cooper For years employers across Canada have struggled with the difference between independent contractors and employees. Individuals believed to be independent contractors are often classified as employees after their relationship ends, leading to liability for employment-related severance and other amounts. The courts, human rights tribunals, and other administrative tribunals are constantly grappling with […]

Do You Comply with the FLSA? Most Employers Don’t

Statistics from the U.S. Department of Labor estimate that almost 70% of employers aren’t in compliance with the Fair Labor Standards Act (FLSA)—a percentage that almost certainly increases when similar violations under state law are taken into account. The federal Department of Labor is tackling this problem in a big way, dedicating a staggering $25 […]

Legislation Seeks to Curb Employee Misclassification via Fines, Notice Rules

Adding momentum to federal agencies’ ongoing initiatives to crack down on employee misclassification, the U.S. House and Senate have introduced legislation intended to curtail the misclassification of employees as independent contractors. The Employee Misclassification Prevention Act, introduced April 22, would amend the Fair Labor Standards Act (FLSA) to impose additional compliance and record-keeping requirements on […]

Risks, Benefits of Using Contingent Workers

by Craig Borowski Many employers use contingent workers: independent contractors, leased employees, consultants, and temporary employees. While using an alternative workforce has benefits, it can create legal and practical risks as well. If you use or are considering using contingent workers, here are some benefits and risks to weigh. Audio Conference: Independent Contractor Myths: New […]