Tag Archives: Independent contractor misclassification

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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Extension of the IRS’s Voluntary Classification Settlement Program: Is it Worth the Price of Admission for Businesses Concerned About Independent Contractor Misclassification?

The IRS earlier this week temporarily expanded the Voluntary Classification Settlement Program (VCSP), which was the subject of a prior post, to permit taxpayers who do not meet all of the conditions for the original Program to reclassify independent contractors as employees for federal employment … Continue reading

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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

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Obama 2.0 and Independent Contractor Misclassification: The Next Four Years of Federal Legislative and Regulatory Activity

The last four years started out with expectations that the federal government would enact legislation to curtail misclassification of employees as independent contractors (ICs).  Yet, not a single bill was enacted despite strong support by President Obama for Congressional action … Continue reading

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Misclassifying the “Underground Workforce” as a Form of Independent Contractor Misclassification

The lead story in today’s front page of the Texas Tribune reports on a hearing before the Texas Workforce Commission where the testimony focused on the intersection of undocumented aliens and independent contractor misclassification. The hearing was held in advance of the Workforce … Continue reading

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