Is Your Company on the Independent Contractor Hit List?The U.S. Department of Labor, the IRS and state workforce agencies have been cracking down on businesses that are believed to be misclassifying employees as independent contractors. This article by Richard Reibstein was originally published on June 16, 2015 as a guest post on Forbes.com.
About Independent Contractor Compliance and Misclassification Legal Blog
Independent Contractor Compliance and Misclassification Legal Blog is published by lawyers Richard Reibstein, Lisa Petkun and Andrew Rudolph of the law firm of Pepper Hamilton LLP; it is dedicated to legal issues involving defense of misclassification claims and class actions, audits and investigations by the IRS and state tax and workforce agencies including unemployment and workers compensation, and compliance with federal and state labor, tax, benefits, and other laws impacting the use of independent contractors.
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Independent Contractor Compliance Legal Blog is published by the authors as individuals to provide timely information, insights, and analysis about the legal and practical issues involved in the use and proper classification of workers treated as independent contractors or paid on a 1099 basis; the blog also serves as a unique resource for employers, consultants, other businesses and law firms seeking information and assistance in this niche area of the law. It does not necessarily represent the views of Pepper Hamilton LLP or its clients. Independent Contractor Compliance Legal Blog is published for informational purposes only. This site should not be considered to be a substitute for legal advice, and it does not establish an attorney-client relationship. The authors provide no warranty relating to any information published on this site. For legal assistance on state-specific questions, the lawyers publishing this blog consult with counsel in such states where required by law. You may also contact an attorney who is licensed to practice in your jurisdiction.
Tag Archives: independent contractor liability
New Misclassification Bill Introduced in Congress: The “Independent Contractor Tax Fairness and Simplification Act of 2012” Seeks to Eliminate “Safe Harbor” for Businesses
On December 12. 2012, Rep. Erik Paulsen (R. Minn.) introduced a bill that bears many similarities to a bill introduced earlier this year by 33 Democrats. The Independent Contractor Tax Fairness and Simplification Act (H.R. 6653) would, like the Fair … Continue reading
Cable Company’s Installers Were Misclassified as Independent Contractors: Another Business that Failed to Properly Structure and Document Its Independent Contractor Relationship
The U.S. Department of Labor recently scored a meaningful victory in yet another court case where a company failed to structure, document, and execute properly an independent contractor relationship with workers who were paid on a 1099 basis. In Hilda … Continue reading
U.S. Labor Department and IRS Sign Pacts to Coordinate Their Crack Downs on Independent Contractor Misclassification
On September 19, 2011, Secretary of Labor Hilda Solis and IRS Commissioner Doug Shulman signed a Memorandum of Understanding to coordinate both agencies’ law enforcement efforts aimed at businesses that misclassify employees as independent contractors. At a ceremony held at … Continue reading
IRS’s New Voluntary Classification Program Adds Another Means to Minimize Independent Contractor Misclassification Liability
The IRS yesterday announced a new program to permit taxpayers to voluntarily reclassify independent contractors as employees for federal employment tax purposes. The program, called the “Voluntary Classification Settlement Program” (VCSP), would allow businesses to voluntarily reclassify workers who currently receive 1099s from … Continue reading
Senate Re-Loads on Independent Contractor Misclassification: New Bill Characterizes Misclassification as “Payroll Fraud”
On Friday, April 8, 2011, Senators Sherrod Brown (D-Ohio), Tom Harkin (D-Iowa), and Richard Blumenthal (D-Conn.) introduced the Payroll Fraud Prevention Act (S. 770), a trimmed-down version of the Employee Misclassification Prevention Act bill that was introduced into both houses of … Continue reading