Employee Or Contractor? New U.S. Guidelines Could Reclassify Workers

waiter taking credit card from a dinerFrom NPR, Yuki Noguchi reports on the effect of the new guidelines.  In particular, she identifies the concern that misclassification is spreading into industries where it has not previously been a problem including hotels, distribution, restaurants and retailing.  Yuki writes:

“Weil says misclassification is a top priority for the Labor Department because nonemployees aren’t covered by various workplace regulations such as overtime, occupational safety, unemployment insurance and the like. The abuse of independent contractor status, he says, has been on the rise, and not just in industries like construction and janitorial work where it has long been an issue.

“But of particular concern, we find it spreading into other industries where in the past it hasn’t been a problem,” Weil says.

Those include hotels, distribution, restaurants and retailing.

Weil says he based the guidelines on precedent established by court decisions — looking at things like compensation structure, the length of the contract, and how much independence the worker has in setting schedules.

Most businesses don’t take advantage of their contractors, and Weil says they will be helped by clearer guidelines. “I think it also benefits employers who are already doing the right thing, who are really undermined by employers who come in and do misclassification,” he says….”

Read or listen to the full story at Employee Or Contractor? New U.S. Guidelines Could Reclassify Workers 

  2 comments for “Employee Or Contractor? New U.S. Guidelines Could Reclassify Workers

  1. Jen
    July 23, 2015 at 10:13 AM

    Independent contractors should always abide by those rules set by the business. If they’re working outside of the hours they’re assigned, then the employer needs to step up and hold them accountable. It’s a violation of the terms and honestly, it’s a violation of the faith by both parties. Unless specified by the employer, something needs to happen to bring upon a resolution.

  2. Heather Simon
    July 23, 2015 at 10:16 AM

    As an independent contractor myself, I am very curious to see how these new guidelines will take effect. I also like that you take note that most businesses don’t take advantage of their contractors, because I have had some wonderful employers.

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