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A Solution to the “Five Degrees of Independent Contractor Misclassification”

“Independent contractor misclassification” is a phrase that is misunderstood, misapplied, and misused – constantly. Why? It is a phrase used to cover an array of disparate situations.  It covers companies that engage in indefensible and inexcusable conduct, such as when a construction worker, custodian, or restaurant worker is paid in cash under the table or when an administrative assistant is wrongfully paid on a 1099 basis.  But the same term is also applied in a few states to de-legitimize IC relationships that are legitimate and lawful in almost all other states and by the federal government.  When used in that context, such as where ICs have some of their own customers but also choose to supplement their income by using a referral company that sends them additional customers seeking the types of services they provide, the phrase “IC misclassification” can justly be regarded as legally unjust to both independent contractors and businesses.  And there are at least three other types of so-called IC misclassification somewhere in between.  Thus, the phrase is best understood in the context of a spectrum, with five degrees of independent contractor misclassification: unpardonable; uninformed; unprepared; unintentional; and unjust. [1]

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About The Publisher

Richard ReibsteinRichard Reibstein is the publisher of this legal blog, which has been, since its inception in 2010, the only legal blog in the country dedicated exclusively to the subject of independent contractor compliance and misclassification. Read more

JDSupra The publisher of this blog, Richard Reibstein, was named “Top Author” in JD Supra Readers’ Choice Awards (2016, 2017, 2019 and 2020) for his thought leadership on the topic of “Employer Liability” issues as well as “Top Author” on “Class Actions” in 2016 and 2020.

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Locke Lord LLP

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