USER NAME
PASSWORD
FORGOT PASSWORD?

1099 Risk Blog

Subscribe to RSS
« previous Categories: State Enforcement next »
April, 2 2008

MA Governor Cracks Down on Misclassification

Posted by mbopartners

One by one, the states are turning up the heat on independent contractor classification. On March 12, 2008, Mass. Governor Deval Patrick signed Executive Order 499 creating a joint task force to identify and crack down on illegal misclassification of workers as independent contractors.

 

"Through joint efforts, the Task Force is charged with combating the underground economy and employee misclassification, including efforts to: (a) foster compliance with the law by educating business owners and employees about applicable requirements; (b) conduct joint, targeted investigations and enforcement actions against violators; (c) protect the health, safety and benefit rights of workers; and (d) restore competitive equality for law-abiding businesses."

 

Download a PDF of the original Executive Order 499.

 

The Boston Globe covered the issue, saying the MA initiative is modeled on similar action taken in the states of California and New York. "Governor Deval Patrick launched an initiative yesterday to crack down on unscrupulous business owners who dodge taxes and other costs by paying workers in cash or by calling them independent contractors. State officials hope that the initiative will bring in millions of dollars in revenue."

 

We predict this issue will continue to rise in prominence as other states take similar measures to recapture tax revenues, and with the unions supporting such activity, the political forces are aligned to help push changes through an ordinarily sticky process. As the risk increases, this is a good time to ask, "Are we improperly classifying employees as independent contractors?" Visit our Compliance Center and also check out our Research tab to learn more about proper worker status classification, or talk with our experts for a complimentary consultation. 

Tags: MA, state, enforcement, misclassification, contractors, executive order, task force

Comments

No comments

Add Comment

back

Blog Image

Recent News

New Study Details Strategies for Managing the Contingent Labor Umbrella, Including Independent Contractors

August 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.

Read the press release >

Visit the newsroom >

New Research

Manazing the Complexities of the Contingent Labor Umbrella

This 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 the PDF

Download MBO White Paper

Maximizing Talent, Minimizing Risk: Approaches for Compliant Independent Contractor Engagement

Conventional 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. 

Download the PDF

Talk With Our Experts

Call 1-800-220-0469, or complete this form. Our experts will be in touch promptly.
NAME  
PHONE  
EMAIL