A new proposed rule from the U.S. Department of Labor (DOL) would make it easier for employers to justify classifying certain workers as independent contractors, but misclassifying workers would still be a costly mistake.
Tag: misclassifying workers
by Gary S. Fealk Smart businesspeople are adept at finding ways to reduce their costs. However, cutting costs associated with employment by using independent contractors is a big risk unless you take great care to make sure you aren’t misclassifying employees as independent contractors. What’s all the fuss about? Various government agencies have been increasingly […]
Many thought it ironic in mid-August when news broke that the U.S. Department of Labor (DOL) had agreed to a $7 million settlement in a 10-year-old dispute with its own employees and their union. The same agency charged with policing how employers comply with the wage and hour law apparently had compliance problems of its […]
by Ryan B. Frazier Employers sometimes classify employees incorrectly under the law. For example, employees may be treated as independent contractors, who are considered self-employed. Although misclassification may be intentional, it is most often done mistakenly under a belief that workers are properly classified. Employees are misclassified for many reasons. Employers may try to avoid […]
by Mark I. Schickman Many of my clients are looking for ways to redefine the working relationship away from the employee model. There are various motives for this: the desire to avoid employee liability, the hope to avoid paying taxes and benefits, and the goal to avoid “head count” (whatever that means). But the law […]
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: […]
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 […]