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The Feds Are Watching For Independent Contractor Misclassification

Article Shared by Sam Sherman, Esq.

In case there was any doubt that you need to be more and more careful about misclassifying your employees as independent contractors, check out the linked article below from The Wall Street Journal.  In it, the Labor Department's head of the wage and hour division explains that the agency will increase efforts to actively investigate employers for misclassification violations.  The Labor Department Administrator says, "In the past, the vast majority of investigations were initiated by complaints.  But we realized we'd never catch up to the problem...We've increased the number of investigators from about 735...to about 1,000...About 50% of investigations arise from complaints and close to 50% are directed investigations based on where we see major problems arising." What does it mean for you?  If you have independent contractors, than you better 1.) make sure they are properly designated, 2.) have strong agreements in place to protect you, and 3.) do all you can to avoid making them look like employees. Read More Here...

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