New York Department of Labor Lawyer Update: Independent Contractor versus Employee Misclassification Battle Stays Hot – New York Employment Lawyer Blog

May of New York StateFrom the New York Employment Lawyer Blog, Villanueva & Sanchala write about the risks of misclassifying workers as independent contractors instead of employees in New York.  They report that, according to the New York State’s Joint Enforcement Task Force, some job categories are more likely to be misclassified than others and discuss why a company may misclassify a worker.  They write:

 

Top Job Categories With The Highest Risk of Misclassification

Professional, Technical and Scientific Services

Construction of Buildings

Food Services and Drinking Places

Publishing Industries (except internet)

Administrative and Support Services

Specialty Trade Contractors

Ambulatory Health Care Services

Personal and Laundry Services

Performing Arts, Spectator Sports, and Related Industries

Educational Services

Motion Picture and Sound Recording Industries

Merchant Wholesalers and Nondurable Goods

Why Would Certain Businesses Try to A Misclassify Worker?

Misclassifying workers may sound like an innocuous issue but its effects ripple throughout our economy. Businesses may try to label workers as independent contractors (i) to avoid paying payroll taxes; (ii) to decrease their costs in order to gain an unfair advantages over compliant businesses; and (iii) to deprive workers protection under certain employment laws and job safety standards. As a continuation of point three, some business owners mistakenly believe that workers will be deprived of unemployment insurance benefits and workers compensation benefits as well and they will save money from contributing to those benefits. However, a filing a claim for benefits is one of the trigger for a government audit or investigation can be commenced and, depending on the circumstances, misclassified workers can be eligible for benefits….”

Read  the full story at New York Department of Labor Lawyer Update: Independent Contractor versus Employee Misclassification Battle Stays Hot

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