In the last month of the Trump administration, the Labor Department finalized a regulation to clarify for employers which workers are employees and which are independent contractors. Because independent contractors are typically ineligible for employee benefits, businesses have an incentive to classify workers that way. The new regulation’s purpose is to make answering the question…Read more
Are your Workers Employees or Independent Contractors?
Before classifying a worker as an independent contractor, it is important for a business owner to do his or her homework carefully. Employment laws today are very strict, so discuss any concerns with an agent. The United States Department of Labor and the Internal Revenue Service have combined their efforts to help various states share…Read more
Misclassifying Workers as Independent Contractors is Bad for Your Business
Employer misclassification of workers as independent contractors is a large and growing problem. Employers trying to keep their costs down may inadvertently or deliberately misclassify workers who should be classified as employees. They escape employment taxes, unemployment and workers’ compensation insurance costs, and paying overtime rates required by law for employees. They also cheat workers…Read more