From The Tax Advisor, Michael D. Koppel provides an overview of the various tests for determining if a worker is an employee or independent contractor. Michael writes; IRS’s test: The IRS identifies 20 common-law factors for deciding whether someone is an employee rather than an independent contractor in Rev. Rul. 87-41. The general focus is whether a business has…
From JDSupra, Steven Bernstein, John Polson, and J. Hagood Tighe report that the United States Department of Labor (DOL), Equal Opportunity Employment Commission (EEOC), and the National Labor Relations Board (NLRB) announced plans to revise the joint employment rules. They write: Joint employment took center stage yesterday during the release of the Fall Regulatory Agenda,…
From Forbes, Patricia Barnes reports on a bill in Congress that would extend employment discrimination protections to independent contractors. It is noteworthy for protecting independent contractors from employment discrimination even if it is unlikely to pass. Patricia writes: U.S. Rep. Eleanor Holmes Norton, D-D.C., has introduced a bill in the U.S Congress that would amend…
From JDSupra, Richard Reibstein reports on the settlement of a class action lawsuit alleging that dental claims reviewers were misclassified as independent contractors. Richard writes: Dental consultants including dentists and hygienists engaged to evaluate dental insurance claims have reached a proposed $3.4 million settlement of proposed class and collective action alleging wage and hour violations…
From Accountingweb, Ken Berry reports on a recent tax court case in which a diesel technology specialist who worked for multiple years for a company was found to be an employee. Ken writes: In a new case, McGuigan, T.C. Summary Opinion 2019-27, 9/30/19, the Tax Court examined the facts involving a worker who had a long-term relationship…
From JDSupra, Atticus Lee, Stephanie Peet, and Dana Weisbrod discuss common mistakes companies make engaging with gig workers including misclassifying them. They write: Misclassifying Gig Economy Employees as Independent Contractors under Federal Law The legal definition of an independent contractor changes depending on the jurisdiction and between federal statutes, such as Title VII of the…
From JDSupra, Ross Boughton, Daniel Lyman, and Noah Woo discuss a recent California appellate case in which the court said that the ABC test adopted by the Dynamex court should be applied retroactively. They write: On October 8, 2019, the Court of Appeals for California’s Second Appellate District in Gonzales v. San Gabriel Transit, Inc., et al.,…
From Staffing Industry Analysts (SIA), Eric Rumbaugh provides an excellent review of the Dynamex decision in California and terrific updates on other changing tests for employee classification. Eric writes: Benefits. For the most part, the Employee Retirement Income Security Act of 1974, or ERISA — the main federal law governing employee benefit plans — permits businesses…
From The Hill, Rebecca Klar summarizes Elizabeth Warren’s proposals for labor law changes including ending misclassification of workers, Rebecca writes: Ending worker ‘misclassification’ in gig economy fields Warren’s plan pushes for a bill that would stop what she calls the “misclassification” of independent contractors. The issue affects the rideshare industry, led by Uber and Lyft,…
MBO Partners shares five types of penalties that a company can incur if it misclassifies workers as independent contractors: Here are five consequences of employee misclassification and what your company can do to remain compliant. 1. Violations for Wage Claims There are a variety of tests and laws used to determine whether or not a worker…