From the Mansfield News Journal | mansfieldnewsjournal.com —
By classifying workers as independent contractors rather than employees under federal tax law, employers can avoid paying payroll taxes, unemployment insurance and workers’ compensation, Brown said.
Workers classified as independent contractors also are denied the protection of critical labor laws, including minimum wage and overtime rules and the right to unionize, he said.
“If employees are classified as independent contractors, then an employer doesn’t have to pay them the benefits they’ve earned,” Brown said. “This isn’t right, and the Fair Playing Field Act would allow the IRS to put a stop to this.”
The senator said worker misclassification is widespread in sectors including construction, transportation, maintenance and janitorial services, agriculture and child care.
Read the full story at Brown wants to close worker classification loopholes [page removed after publication]
- Brown wants to close worker classification loopholes – Mansfield News Journal (mansfieldnewsjournal.com)
- Senate Finance Committee Considering Measure to Largely Repeal IRC Section 530 Safe Harbor for Most Businesses Using Independent Contractors (schnaderworks.com)
- Proposed Changes: 1099 Independent Contractor Classification and Misclassification Penalties (contingentworkforce.wordpress.com)