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One in Three Businesses at Risk in Independent Contractor Crackdown

Caesar: The ides of March are come. Soothsayer: Aye, Caesar, but not gone. -Julius Caesar, Act III, Scene 1 On this March 15th, human-owned businesses don't need Shakespeare's Soothsayer to warn of forthcoming trouble in the classification of employees and independent contractors...

Foley & Lardner Labor and Employment Law Weekly Update (Week of October 10, 2011)

Heat Turned Up on Alleged Worker Misclassification Written by: John F. Birmingham, Jr. The classification of workers as independent contractors has been a focus of multiple federal and state agencies for at least the past two years. However, the September 19, 2011 announcement by the leaders...

Giving Business a Fresh Start on Worker Misclassifications

The proper classification of a worker as an "employee" or "independent contractor" is one of the more important, but sometimes confusing, tasks faced by a business. In earlier posts, I've provided guidance on making the right classification and warned of enhanced efforts by governments...

Duane Morris Alert-Businesses and Households Employing Independent Contractors - Beware

The IRS is becoming more aggressive in enforcement of employment classification and is scrutinizing the distinctions between employees and independent contractors with an increasing level of focus. The question of whether a worker is an independent contractor or employee for federal income and employment...

IRS to Employers: Raise Your Hand If You've Misclassified Workers

All individuals performing work for an employer should be classified as employees or independent contractors. Employees are then further classified under the Fair Labor Standards Act as "exempt" or "non-exempt" for purposes of overtime compensation. Proper classification of employees...

Employee vs. Independent Contractor: Do You Know the Difference?

Employers take a risk when they classify someone performing services for them as an independent contractor instead of an employee. Because employers owe contractors far fewer obligations than employees, employers risk each of the following if a court determines that a misclassification occurred:...

Department of Labor’s "Right to Know" Initiative Apparently Expanded

by John E. Thompson The U.S. Labor Department has announced another proposal to conduct a survey relating to "worker classification issues" under the federal Fair Labor Standards Act. Readers will recall our posts about a similar USDOL notice published earlier this year. Both proposals...

Independent Contractor or Employee: Do You Pass the “Economic Realities” Test?

by Michael Marr In the first Administrator’s Interpretation issued in more than a year, the Department of Labor has recently weighed in on the debate over the misclassification of employees—a debate that has been stirred up of late by companies such as Uber , Lyft , and the now closed...

Employee or Independent Contractor? Third Circuit FLSA Edition

Few things in the law are as poorly defined as the distinction between independent contractors and employees. This will be the first post in a series dedicated to that distinction. One of the problems is that courts apply different tests depending on the underlying legal issue. Jurisdiction also matters...

Employee or Independent Contractor? Unemployment Compensation Edition

Yesterday, we reviewed the Third Circuit's classification test for employees under the FLSA . Next up: Pennsylvania's test for purposes of Unemployment Compensation. When does this come into play? Well, claimants are generally not entitled to UC benefits if they get fired from an independent...