Archive for the 'Independent Contractors' Category

Misclassifying Employees as Independent Contractors: Front-Burner Issue Again

January 19, 2012 at 9:00 pm by: Tennessee Employment Law Letter

by Kara E. Shea
Independent contractors, by definition, are self-employed. Because they aren’t employees, they aren’t covered by employment, labor, and related tax laws. As a result, some employers may be tempted to reclassify employees as independent contractors to avoid taxes, benefits, record-keeping requirements, overtime, and other expenses.

Independent Contractor vs. Employee

June 30, 2011 at 9:00 pm by: Michigan Employment Law Letter

by Gary S. Fealk
Businesses often find it advantageous to hire independent contractors to perform a variety of duties in place of employees. Using independent contractors can reduce expenses for payroll taxes and benefits, avoid the impact of laws like the Fair Labor Standards Act (FLSA) and the Family and Medical Leave Act (FMLA), and arguably [...]

DOL, IRS, Congress Want to ‘Help’ Workers Who Think They Are Misclassified as Independent Contractors

June 9, 2011 at 9:00 pm by: Kansas Employment Law Letter

by Vaughn Burkholder and Tara Eberline

What do the U.S. Department of Labor (DOL), the Internal Revenue Service (IRS), and Congress have in common? Sound like a setup for a bad joke? The punch line is that each of those federal entities has announced its intention to focus on employers’ misclassification of employees as independent contractors. [...]

Individual Liability for Wage and Hour Claims

September 30, 2010 at 9:00 pm by: Tennessee Employment Law Letter

by Kara E. Shea
I recently participated in hosting a Wage and Hour Virtual Summit webinar. Wage and hour compliance — overtime, work-time issues, exempt status — is always a lively topic and typically results in lots of questions and feedback. This time around, most of the feedback surrounded remarks I made about individual liability under [...]

Employers Facing Increased Scrutiny over Worker Classification

July 15, 2010 at 9:00 pm by: Pennsylvania Employment Law Letter

by Robert C. Nagle
Employers can expect increased enforcement efforts from federal and state labor and tax authorities over what’s believed to be a rising tide of misclassification of employees as “independent contractors.”

Tips for Minimizing Risk When Cutting Labor Costs

December 30, 2009 at 11:57 am by: Colorado Employment Law Letter

by Mark Wiletsky
Although we’re beginning to see signs of an economic recovery, many organizations are still grappling with how to stay competitive in this challenging environment. Layoffs, furloughs, and other methods used to cut personnel costs are often part of the equation. But the savings gained by those cost-cutting measures can be lost if employees [...]

Legal Issues with Independent Contractors Plugged into Your Electronic Resources

May 15, 2009 at 11:41 am by: HR Insight

by David Micah Kaufman
Like many of us, several of my friends have recently suffered vocational dislocation (no matter what we name it, losing a job is still a tragedy). One of these friends called me a few weeks ago and told me he had landed a position as a independent contractor for a financial services [...]

Obama Will Bring Change for Employers

January 23, 2009 at 12:58 pm by: New York Employment Law Letter

Now that President Barack Obama has been sworn into office many expect to see more new workplace regulations in the upcoming months than at any time in the last two decades. This article discusses of some of the proposed legislation that could affect employers in the areas of civil rights (the [...]

Risks, Benefits of Using Contingent Workers

September 26, 2008 at 10:20 am by: Indiana Employment Law Letter

by Craig Borowski
Many employers use contingent workers: independent contractors, leased employees, consultants, and temporary employees. While using an alternative workforce has benefits, it can create legal and practical risks as well. If you use or are considering using contingent workers, here are some benefits and risks to weigh.

Correctly Classifying a Worker as an Independent Contractor

June 6, 2008 at 12:00 pm by: New York Employment Law Letter

by Tracey A. Cullen
It’s no news flash that companies must proceed with caution when classifying someone who provides them with services as an independent contractor. Independent contractors are paid flat fees without tax deductions or employment taxes. Employees are paid salaries subject to withholding, FICA, FUTA, and other employment taxes and are [...]