Practical HR Tips, News & Advice. Updated Daily.
Misclassification: DOL and IRS Declare War Misclassification—calling individuals “independent contractors” or “volunteers” who properly should be employees—is a burgeoning legal battleground for employers. A recent 30-million-dollar suit on behalf of newspaper carriers is a good example of the stakes involved, says attorney Christine V. Walters. Unauthorized Overtime–Must Be Paid Even if Forbidden Many employers have […]
Before they find themselves under a wage enforcement microscope, employers need to be aware of potential problems and misclassification errors when designating workers as independent contractors instead of standard employees. The U.S. Department of Labor has had the misclassification of workers squarely in its cross hairs for a while. In particular the designation of “independent […]
Wal-Mart Stores, Inc. will pay almost $5.3 million in penalties, damages and back wages for overtime violations at stores nationwide, the U.S. Department of Labor said on May 1. According to the agency, 4,500 vision center managers (VCMs) and asset protection coordinators (APCs) at Wal-Mart Supercenters, Wal-Mart Discount Stores, Neighborhood Markets and Sam’s Club Warehouses were […]
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 […]
Now that President Barack Obama has been sworn into office many expect to see more new workplace regulations in the upcoming months than at any time in the last two decades. This article discusses of some of the proposed legislation that could affect employers in the areas of civil rights (the Civil Rights Act of […]
by Tracey A. Cullen It’s no news flash that companies must proceed with caution when classifying someone who provides them with services as an independent contractor. Independent contractors are paid flat fees without tax deductions or employment taxes. Employees are paid salaries subject to withholding, FICA, FUTA, and other employment taxes and are protected under […]