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Misclassification
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Why a Risk Assessment is Important Discussion of independent contractor misclassification seems to be everywhere nowadays. And while most now acknowledge that threat of reclassification is real and growing, most businesses don’t know how to quantify this risk. This isn’t surprising. IC reclassification penalties are highly variable and may rise and fall at the discretion of…
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As the 64.6 million-strong independent workforce continues to grow, so does the issue of employee misclassification. The IRS estimates that millions of workers have been misclassified, and according to state-level studies, 10-30% of employers misclassify their employees as independent contractors. While some misclassification is unintentional due to lack of understanding about laws regarding worker classification, sometimes it is done…
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As the independent workforce continues to grow, so do the issues of worker compliance and misclassification. It is important for enterprises to remain informed about the latest laws, regulations, and developments surrounding these topics. Each month, we’ll bring you the latest news stories from around the web. 1. New Jersey Supreme Court Says forming an…
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As the independent workforce continues to grow, so do the issues of worker compliance and misclassification. It is important for enterprises to remain informed about the latest laws, regulations, and developments surrounding these topics. Each month, we’ll bring you the latest news stories from around the web. 1. Class Action Lawsuits Alleging Misclassification of Independent…
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The methods that federal and state agencies use to determine whether a worker is an independent contractor vs an employee are quite complex. In the 2013 case of Schwann et. al. v. FedEx, under Massachusetts law, FedEx had virtually no chance of proving that the drivers were not employees. How does the federal government determine…
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As the independent workforce continues to grow, so do the issues of worker compliance and misclassification. It is important for enterprises to remain informed about the latest laws, regulations, and developments surrounding these topics. Each month, we’ll bring you the latest news stories from around the web. 1. United States Supreme Court says Arbitration Agreements…
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Engaging an independent contractor is different than hiring an employee because different laws apply to each category of worker. If your organization engages independent contractors, it is important to consider how your company will comply with relevant laws, policies, and regulations. For example, while companies have the ability to schedule employees and control how they…
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Updating policies and practices to compliantly engage independent contractors is a major shift many large organizations are going through. Worker misclassification is a serious issue—if a company classifies a worker as an independent contractor when they should really be classified as an employee in the eyes of the law, they are liable for fines, penalties,…
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Worker misclassification is a complex topic. It does not always have a straightforward solution. Often, misclassification can be unintentional because businesses simply do not have a full understanding of the laws regarding how to classify their workers. However, it can also be done intentionally to reduce labor costs or avoid payroll taxes. Regardless of why…
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The cost of employee misclassification on independent contractors and what organizations can do to minimize risk.
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