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1099 Risk BlogJune 2010June, 30 2010
STURGEON GENERAL'S WARNING: FISHY IC COMPLIANCE CLAIMS MAY BE HAZARDOUS TO YOUR BUSINESSPosted by Liz Greene | Comments: (0)
Independent Contractor (IC) compliance is hot, and there are a lot of purportedly "expert" solutions springing up to help solve these issues. Any time there is a market opportunity new businesses pop up, hoping to cash in on the trend. But this is a complicated field, and one of the reasons people look for experts is that the issues are confusing, which makes it difficult to tell who is for real and who is a . . . June, 30 2010
IC Risk: A Tidal Wave of Wage and Hour Class Action LawsuitsPosted by Liz Greene | Comments: (0)
If you think IRS reclassification is the only dimension of 1099 risk, think again. According to Garry Mathiason of the noted employment law firm Littler Mendelson*, there were 5,786 class action lawsuits for wage and hour violations filed in 2009, a 40% increase over the prior year and representing over 80% of all class actions. The cases include overtime, meal breaks and rest breaks, and minimum wage requirements. If you have misclassified workers as independent contractors instead of employees, then your risk exposure for wage and hour is undeniable . . . June, 17 2010
Employee Misclassification Prevention Act Hearings TodayPosted by Liz Greene | Comments: (0)
There is movement in independent contractor legislation pending in Congress: the Senate Committee on Health, Education, Labor and Pensions conducted hearings today focused on the Employee Misclassification Prevention Act, or EMPA. The hearing was titled, "Leveling the Playing Field: Protecting Workers and Businesses Affected by Misclassification." That link hosts a video showing highlights of the hearing. If passed, the Employee Misclassification Prevention Act (EMPA) would amend the Fair Labor Standards Act to criminalize . . . June, 9 2010
New 1099 Law Pierces the Corporate Veil of Hidden Independent ContractorsPosted by Liz Greene | Comments: (2)
The impacts of the new healthcare laws on contingent workforce management will not be fully understood for some time. But some provisions of great concern are approaching rapidly, including a little understood 1099 reporting provision slated to take effect on January 1, 2012. Like the proposed Employee Misclassification Prevention Act (EMPA) bill, this new requirement would “pierce the corporate veil” hiding independent contractor vendors and require immediate discovery and control over challenging spend categories such as statement of work consultants and sub-contractors. June, 4 2010
FedEx May Be In For Over $1 BillionPosted by Liz Greene | Comments: (0)
According to a press release issued yesterday by Leonard Carder, LLP, the first summary judgement on the multi-district class action lawsuit over the worker classification of FedEx Ground and Home Delivery drivers has been issued. The judge presiding over the 63 cases issued an Opinion and Order on May 28, 2010 granting summary judgement to the drivers in Illinois. The class action lawsuit, which has been developing over the past five years, centers on whether the delivery drivers are true independent contractors (as FedEx maintains) or are actually misclassified employees of FedEx.
Tags:
Fedex,
1099 vs W2,
drivers,
misclassified,
independent contractors,
employees,
illinois,
Faris
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Recent NewsNew Study Details Strategies for Managing the Contingent Labor Umbrella, Including Independent ContractorsAugust 12, 2010 -- New research on contingent workforce management from Aberdeen highlights a new trend in independent contractor and SOW consultant management: a dramatic increase in the use of Independent Contractor Engagement Specialists (ICES) that help businesses reduce the risks of engaging independent contractors and other contract workers, including misclassification and co-employment risk. New ResearchManazing the Complexities of the Contingent Labor UmbrellaThis latest research from Aberdeen reports on the dramatic growth in the use of independent contractors, SOW consultants, and services spend, and gives insights on how Best-in-Class organizations are navigating the contingent labor landscape. This year, the report has an expanded scope to include new categories of spend in the contingent workforce, including project / services spend. Download MBO White PaperMaximizing Talent, Minimizing Risk: Approaches for Compliant Independent Contractor EngagementConventional Contingent Workforce Management (CWM) approaches are weak when it comes to independent contractors. But recent innovations are being integrated into VMS/MSP programs with powerful results. This whitepaper shows how to focus on the root cause of independent contractor challenges, rather than symptoms, and reap significant risk mitigation. Talk With Our ExpertsCall 1-800-220-0469, or complete this form. Our experts will be in touch promptly. |


