Written by Sarah Archer The trend of working from home is growing rapidly with companies and employees alike recognizing the economic and emotional benefits of telecommuting. According to work from home statistics, remote work saves money, provides better work-life balance, and even leads to improved productivity. However, in their haste to take advantage of remote…
From Luxury Travel Advisor, Matt Turner reports that Congresswoman Elise Stefanik (NY-21st) introduced a bill that would provide clear and consistent rules for classifying workers as employees or independent contractors. Matt writes: While plenty of focus in recent weeks has been spent combating California Assembly Bill (AB) 5, which would drastically change the host travel agency…
From JDSupra, Ariel Kelly discusses the advantages and disadvantages of engaging with gig workers and then provides guidance for avoiding misclassification of gig workers. Ariel writes: Best Practices to Avoid Misclassification of Gig Workers: For companies to reap the benefits of engaging gig workers, the workers must be properly classified. In fact, misclassification of a…
From Top Class Actions, Kim Gale reports on a proposed settlement by of claims that workers were misclassified by Pepperidge Farm, Inc. as independent contractors. The proposed settlement would be for $22.5 million. Kim writes: If the proposed settlement is approved, the motion divides it up as follows: Approximately $12.52 million will be awarded to…
MBO Partners provides terrific guidance on how to minimize the risks of misclassifying workers: 1. Be Aware of Degree of Control One of the top causes of misclassification is degree of control in a client-independent contractor relationship. By law, independent contractors operate as their own business entity. They have the right to complete work when,…
From Forbes, Diane Mulcahy discusses the challenges created by the various classification tests and offers suggestions on how to fix worker classification. Diane writes: How Can We Fix Worker Classification? The most common proposal to fix the worker classification system is to add a third category of workers called “independent worker,” or “dependent contractor.” The…
From Business News Daily, Marisa Sanfilippo recommends that small businesses conduct a FLSA self-audit to ensure compliance including a review of whether a worker is properly classified as an employee or independent contractor. Marisa writes: Contractors and nonemployees This is one of the trickier points for many small business owners. If your business uses a…
MBO Partners provides excellent guidance for businesses on the misclassification of workers as independent contractors. Why is Worker Misclassification a Risk? There are a number of laws, tests, and definitions to help businesses determine whether a worker is an independent contractor or an employee. Unfortunately, these guidelines lack uniformity, are often quite detailed and can be…
MBO Partners provides great advice for engaging with independent workers: 1. Find an Experienced Organization to Partner With Working with an established independent contractor engagement firm can help give you peace of mind when it comes to contractor compliance tests and misclassification risk. Firms like MBO Partners have years of experience and proven methodologies for evaluating and…
From JDSupra, Adam L. Lounsbury, and Brendan Sweeney review recent developments relating to classifying workers as independent contractors including the Department of Labor’s postion, employer’s responsibilities to independent contractors relating to sexual harassment, state and local developments and state statutes. Adam and Brendan write: State and Local Developments Both the regulators and the courts in…