Independent Contractors Penalties

Independent contractors are individuals or entities that perform work for other individuals or entities, but are not employees of those individuals or entities. Whether a worker is an employee or an independent... more +
Independent contractors are individuals or entities that perform work for other individuals or entities, but are not employees of those individuals or entities. Whether a worker is an employee or an independent contractor is not always an easy determination. However, due to differences in tax and liability treatment, misclassifying an employee as an independent contractor can have serious consequences. Autonomy is the defining feature of independent contractor arrangements. Independent contractors control the manner and method of how work is performed while payers control the desired result. Control over schedule and number of hours worked, ownership of equipment or tools, permanency of relationship, and acceptance of jobs from multiple entities are all possible factors in determining whether a worker is an employee or independent contractor.   less -
News & Analysis as of

Workers' Compensation Alert: Predetermination/Misclassification in the Construction Industry

In Nate Holyoke Builders, Inc. et al. v. WCB AIU, WCB App. Div. No. 14-11 (April 24, 2014), the employer appealed a decision imposing a $30,000 penalty for misclassification of nine employees as independent contractors. The...more

Take 5 Newsletter: An Employer's "Top 5" Action Items for 2014

It's December, and human resources professionals and law departments are reflecting on the issues addressed in 2013 and giving thanks for incident-free holiday parties. But the big question is this: What issues should get...more

New Jersey Governor Vetoes Bill To Punish Misclassification Of Trucking Business Employees

On September 9, 2013, New Jersey Governor Chris Christie issued an absolute veto to a bill (A1578) that would have had a serious impact on trucking industry employers in New Jersey. As we previously discussed in the September...more

Employment Classification Lessons Learned From Scantland v. Jeffry Knight Inc.

A recent Eleventh U.S. Circuit Court of Appeals decision issued a strong admonition to employers: the misclassification of workers as independent contractors rather than employees may have serious financial and operational...more

Another Reason Not to Misclassify Employees

As reported in prior Snell & Wilmer publications (See September 2011 Workplace Word, October 2011 Workplace Word and January 9, 2013 Legal Alert), there are numerous reasons why employers need to ensure that they do not treat...more

New Tennessee Law Penalizes the Construction Industry For Misclassifying Workers

Effective July 1, 2013, the Tennessee Department of Labor and Workforce Development (TN DOL) will be authorized to impose penalties on construction companies that avoid paying workers’ compensation premiums by misclassifying...more

eTrends - Additional States Join the Federal Department of Labor's Initiative to Detect Misclassification of Employees as...

California and Louisiana recently became the twelfth and thirteenth states, respectively, to enter into a Memorandum of Understanding with the federal Department of Labor ("DOL") as part of the DOL's effort to detect and...more

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...more

New California Laws Increase Penalties for Employee Misclassification and Wage Theft

California Governor Jerry Brown has signed two employment related bills into law, raising the stakes for employers doing business in California. The two laws, which increase the penalties for employers that wrongly classify...more

Legal Alert: Employee Misclassification Relief?

The IRS recently announced a new "Voluntary Classification Settlement Program" (VCSP), which allows employers to correct worker classification errors and pay significantly reduced penalties, without having to go through...more

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