Worker Misclassification

How Freelancers Can Make Sure They Get Paid on Time

giving someone a check

  From the Harvard Business Review, Rebecca Knight offers excellent advice to freelancers on how to get paid on time.  These are a few of her recommendations.  Rebecca writes: Get it in writing Before you start working on an assignment, you need a contract that lays out the scope of the project, the payment terms, and the…

Is Workers’ Compensation Required For Independent Contractors?

get adequate business insurance

  From Insure Your Company.com, Dan Levenson discusses some of the insurance issues surrounding engaging with independent contractors and offers advice on how to protect a business.  Dan writes: How To Protect Your Business Some employers protect themselves on this issue in a few different ways ways: They buy the insurance, even if those in charge…

NC “Employee Classification” Law Warrants Caution But Doesn’t Change Substantive Law 

North Carolina

  From JDSupra, Robin E. Shea discusses the new North Carolina statute that targets misclassification of workers as independent contractors.  Robin writes: On August 11, Gov. Roy Cooper signed into law the North Carolina Employee Fair Classification Act. The portion of the legislation that deals with worker classifications will take effect December 31. The legislation does not change existing…

Insurance Agents as Employees? Court Breaks Independent Contractor Precedent 

insurance agent

  From JDSupra, SoRelle Brown, Adam Cohen, Kristine Ellison, Patrick Gennardo, Phillip Stano and Gail Westover discuss a recent case in which insurance agents were determined to be employees.  They write: On August 1, 2017, the US District Court for the Northern District of Ohio held that insurance agents working under independent contractor agreements with an insurer were employees for purposes…

Why You Should Care About Compliance

Gene Zaino

  From Forbes, Gene Zaino discusses reasons why you should care about compliance.  Gene writes: Here are three reasons compliance should be top of mind for all organizations that engage independent professionals. Compliance Aids In Proper Classification Classification of independent contractors is not a clear-cut process. Federal, state and local government agencies use a variety…

Joint Employment Game Changer? Proposed Law Would Radically Alter Definition In Employers’ Favor

congress capitol hill

  From JDSupra, John Polson discusses a bill (HR 3441) which would change the definition of “joint employment” to reduce the number of parties liable for wage and hour and labor law lawsuits.  This is particularly interesting for the question of classification of a worker as an employee or independent contractor because companies are concerned about labor…

Supreme Court to Hear Oral Argument in October on Enforceability of Employment Class Action Waivers in Arbitration Agreements 

Supreme Court

  From JDSupra, Timothy Del Castillo and Joe Liburt discuss the pending oral arguments on the enforceability of arbitration agreements class action waivers.  Timothy and Joe write: In January, we reported that the Supreme Court granted review of three conflicting Court of Appeal decisions to settle the question of whether an agreement requiring that employees resolve employment-related disputes through individual…

Contractor fined $3.5M for workers comp, other violations 

Drywall installers

    From Business Insurance, Louise Esola reports that an Oakland contractor was fined $3.5 million for, among other things, misclassifying workers as independent contractors.  Louise writes: California regulators fined an Oakland contractor more than $3.5 million in wages and penalties for multiple wage theft and labor law violations, including worker misclassification that led to…

The Cost of Misclassification: Businesses

rising costs

MBO Partners shares information on the cost of misclassifying workers as independent contractors. The Cost of Misclassification on Businesses Problem There are a number of laws, tests, and definitions to help businesses determine whether a worker is an independent contractor or an employee. Unfortunately, these guidelines lack uniformity, are often quite detailed, and can be interpreted…

New Bill Could Add Safe Harbor to Definition of Employee 

harbor

  From Lexology, Daniel O’Neil discusses a new bill in the United States Senate that adds a safe harbor for employers who classify workers as independent contractors.  Daniel writes: In the employee benefits world, a lot can hang on an individual’s classification as an employee. Whether someone is a leased employee, an independent contractor, or a member…