Fenwick Employment Brief - October 11, 2011


In this issue: IRS Program Provides Amnesty for Settling Contractor Misclassifications; Important California Legislative Developments; “Meal Period” Issue Set For Oral Argument in Brinker: The “Provide” v. “Ensure” Saga Continues; NLRB Pushes Deadline to Post Employee Notice to January 31; Employer Defeats Challenge to Termination Over Facebook Post; Unsigned Sales Commission Plan Enforceable; Retaliation Claims Survive, Even as Underlying Sexual Harassment Claims Dismissed; and Appellate Court Rules Employment Arbitration Agreement Unenforceable Since Employees Cannot Waive PAGA Representative Actions.

Excerpt from IRS Program Provides...':

The Internal Revenue Service (“IRS”) recently announced a program to encourage employers to reclassify workers who were previously misclassified as independent contractors. Through the Voluntary Worker Classification Settlement Program, companies may voluntarily reclassify independent contractors as employees for future federal employment tax purposes and settle any past payroll taxes on such workers’ compensation. To be eligible for the program, the company must have consistently treated the worker as a nonemployee, filed the required 1099 tax forms for the past three years, and not be under a worker classification audit. Participating companies will be required to pay 10% of the employment tax liability that may have come due on compensation paid to the reclassified workers in the past year – with no interest or penalties due and a guarantee of no employment tax audit of reclassified workers for the prior years. More information about the program and other conditions of participation is available at the IRS website.

Please see full publication below for more information.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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