Tag Archives: IC Diagnostics

Unemployment Benefit Claims and Independent Contractor Misclassification Liability: A Single Claim by One Worker Can Lead to Disastrous Results

It is rare for a business to challenge an administrative determination concerning a single worker’s claim for unemployment insurance benefits. Indeed, many employers tend to delegate responsibility to handle administrative proceedings before state unemployment offices to companies providing “unemployment claims services.” This is … Continue reading

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KGB USA, Text Message and Internet Information Provider, Settles Independent Contractor Misclassification Claim with U.S. Department of Labor for $1.3 Million

Last week, kgb USA, which operates a text message and Internet-based information service, consented to the entry of a federal court judgment to pay $1.3 million in unpaid minimum wage and overtime wages to its 14,500 current and former “Special … Continue reading

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Staffing and Workforce Solutions Company Using Independent Contractors Face Misclassification Liability and Expose Clients to Undue Risks

This month there have already been two cases in the staffing and workforce solutions industry that highlight the risks posed to that industry and their clients where the workers being referred are paid on a 1099 basis. One case arose in … Continue reading

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New Federal Worker Misclassification Study: U.S. Department of Labor to Question Workers About Their Knowledge of Independent Contractor Misclassification

Buried in the Federal Register on January 11, 2013 is a proposal for the U.S. Department of Labor to conduct a study to “better understand employees’ experience with worker misclassification” by “measur[ing] workers’ knowledge about their current job classification, and … Continue reading

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Hidden Due Diligence Risk in Mergers, Acquisitions and Investments: Independent Contractor Misclassification Oftentimes Overlooked by Private Equity Firms, Hedge Funds and Other Investors

Many due diligence reviews in mergers, acquisitions and investments have ignored the issue of independent contractor (IC) misclassification liability. This is a difficult exposure to identify unless the legal team digs below the information typically provided by the seller or available in public records. In view … Continue reading

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