United States

U.S. Department of Labor releases Guidance on Economic Realities Test

US DOL WHD Administrators Interpretation

From the United States Department of Labor, the Wage and Hour Division (WHD) announced the release of the  Administrator’s Interpretation 2015-1 which provides guidance on the application of the economic realities test that the Department uses to determine if a worker is an employee or independent contractor.  The WHD states: On July 15, 2015, the U.S. Department of…

Companies accused of misclassifying workers to pay $700k in back wages, penalties

construction worker

From AZCcentral, Laurie Merrill reports that sixteen individuals agreed to pay $700,000 in back wages and penalties after they misclassified more than 1,000 construction workers.  Laurie writes: “Sixteen Arizona and Utah defendants accused of misclassifying more than 1,000 construction workers agreed to pay $700,000 in back wages and penalties, the U.S. Department of Labor announced…

The Drive Towards “Fighting” Misclassification Heats Up In DC

Obama

  From Wage & Hour – Developments & Hightlights, Mark Tabakman writes about the Obama Administration’s focus on misclassification and the initiative in its proposed budget.  He writes: “Under the proposed budget, it is anticipated that the DOL will hire more than 350 new employees, including 177 investigators and other enforcement staff.  The Wage Hour Division,…

You’re fired! Want to continue to work for us as an Independent Contractor?

you're fired you're hired

From JDSupra Business Advisor, Jennifer Will of McNees Wallace & Nurick describes a case where an insurance company changed all its agents from employees to independent contractors.  She writes that when the company make the change, the company “became a target of the EEOC. In its attempts to avoid litigation, [the company] decided to terminate all of…

The 2016 federal budget: targeting independent contractor misclassification as part of the “fissured workplace”

office workers

From Lexology and the Independent Contractor Compliance and Misclassification Legal Blog, Richard J. Reibstein, Lisa B. Petkun, and Andrew J. Rudolph discuss the budget justification issued by the Department of Labor’s Wage and Hour Division.  The first key initiative is addressing the “fissured” workplace, referring to models that “function to obscure, or eliminate entirely, the link between the worker and…

Who Owns What When a Copyrighted Work is Created in the Workplace

copyright

From the National Law Review — Brandon K. Johnson writes about the challenges around intellectual property rights that exist when independent contractors create copyrighted materials.  He writes: “Independent contractors can create copyrighted works on behalf of another, and unless there isn’t a definitive agreement that the work is a work made for hire, the contractor…

Wondering what the Department of Labor will be doing this year? Here’s what the agency says

US Department of Labor seal

From Lexology — David L. Woodward of Poyner Spruill writes about what the the United States Department of Labor’s priorities are in 2015. Among the top priorities is the proper classification of workers as employees or independent contractors.  He writes: “According to the U.S. Department of Labor (DOL), it plans to increase its emphasis on…

5 New Year’s Resolutions for Compliance Officers

Develop a Risk-Based Compliance Program

From Corporate Counsel — Ryan McConnell and Meagan Baker write about New Year’s resolutions for compliance officers but essentially outline a risk-based compliance program.  Readers of this blog recognize the risks of misclassification of workers as independent contractors instead of employees and the increase it the risk in 2015 with the implementation of the Affordable…

Labor Department Sharpening Focus on Misclassification

From Bloomberg BNA – “In combating employee misclassification, the Labor Department is taking strategic misclassification enforcement to the next level by placing greater priority on measures that are tactical and swift, a department official said. “To carry out our job, we must be prudent and strategic in our enforcement actions,” said David Weil, administrator of…