From the Independent Contractor Compliance and Misclassification Legal Blog, Richard Reibstein discusses a working paper recently released by the Economic Policy Institute. Richard reports that the working paper notes that independent contractors do not benefit from workers compensation, unemployment insurance and other labor laws. Richard also notes that a recent GAO study found that 85% of independent contractors were satisfied with their employment. In addition, Richard writes:
“For those businesses that use independent contractors and wish to comply with the law in a manner recognized by Labor Secretary Perez as legitimate, this new working paper from the Economic Policy Institute merely restates the question faced by such companies – how do we enhance our compliance? – but provides no answers. Businesses that worry about the risks of unintentional independent contractor misclassification are, however, readily able in most situations to minimize their exposure by use of one of three alternatives: (1) restructuring, re-documenting, and re-implementing independent contractor relationships consistent with the applicable tests under federal and state laws; (2) reclassifying independent contractors, either voluntarily or by means of government programs; or (3) redistribution of independent contractors by use of a knowledgeable staffing or workforce management company.