New Laws Clamp Down On Employee Misclassifications


New Laws Clamp Down On Employee Misclassifications

By Frank L. Brunetti on April 6th, 2012

Employers may be paying closer attention to how they classify workers in light of new state statutes that are being adopted in many areas of the country.

Business owners who misclassify employees as independent contractors may now be subject to harsher penalties, according to the Washington Post. Independent contractors are typically workers who operate their business with their own resources and determine their own schedules, according to the Internal Revenue Service. However, when employees telecommute or have unconventional schedules and responsibilities, the lines can be blurred.

Over the course of the year, the U.S. Department of Labor, along with several states, discovered several instances of employers misclassifying employees as independent contractors, the Post reports....

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