The Fiscal Year 2013 Budget was announced by President Obama on Monday, February 13. It once again includes special funding for the Labor Department to “detect and deter” companies from misclassifying employees as independent contractors. Specifically, on page 146 of the Budget for the Labor Department, President Obama commits $14
Richard Reibstein Esq.
As a leading practitioner of enhancing independent contractor compliance and defending against misclassification claims, Richard represents large and small companies in administrative and judicial matters across the country, in addition to his labor/employment and noncompete/trade secrets practices.
California and U.S. Labor Department Enter into Memo of Understanding to Jointly Combat Independent Contractor Misclassification
By Richard Reibstein Esq. on
Posted in Uncategorized
In a news release issued earlier today, February 9, 2012, the California Labor Commissioner co-hosted a press teleconference with the Deputy Administrator of the U.S. Department of Labor during which they announced the signing of a memorandum of understanding between the two agencies focused on misclassification of employees as independent…
Federal Appellate Court Rules that Massachusetts’ Anti-Independent Contractor Law Can Be Challenged by Delivery Companies
By Richard Reibstein Esq. on
Posted in Uncategorized
The Massachusetts Delivery Association (MDA) has succeeded in its appeal of a federal district court’s dismissal of its lawsuit to invalidate the Massachusetts Independent Contractor Law as an impermissible law “related to a price, route, or service of any motor carrier . . . with respect to the transportation of…
“Agency Operators” for Avis Budget Commence Class Action Lawsuit for Independent Contractor Misclassification
By Richard Reibstein Esq. on
Posted in Uncategorized
Last Friday, October 14, a group of 17 “agency operators” for jointly-owned Avis Rent a Car and Budget Rent a Car filed a class action class action complaint in California alleging that the rental car agencies misclassified them as independent contractors (ICs) instead of employees. Although the agency operators acknowledge…
Congress Reintroduces the “Employee Misclassification Prevention Act,” Which Would Create a Federal Offense for Misclassification of Employees as Independent Contractors
By Richard Reibstein Esq. on
Posted in Uncategorized
Following on the heels of aggressive new measures announced by the U.S. Department of Labor and IRS in the past month and the recent enactment of a new California law to crack down on willful misclassification of employees as independent contractors, Rep. Lynn Woolsey (D. Calif.) reintroduced, as H.R. 3178…
California Joins Growing Number of States to Enact Independent Contractor Misclassification Legislation: State adds new, costly penalties for willful misclassification, but protects the right of businesses to continue to legitimately use independent contractors
By Richard Reibstein Esq. on
Posted in Uncategorized
California joins a growing list of states that have enacted independent contractor misclassification legislation in the past four years. This new law, signed by Governor Jerry Brown on October 9, 2011, adds harsh financial penalties for companies and persons who engage in “willful misclassification” of employees as independent contractors,…
Cable Company’s Installers Were Misclassified as Independent Contractors: Another Business that Failed to Properly Structure and Document Its Independent Contractor Relationship
By Richard Reibstein Esq. on
Posted in Uncategorized
The U.S. Department of Labor recently scored a meaningful victory in yet another court case where a company failed to structure, document, and execute properly an independent contractor relationship with workers who were paid on a 1099 basis. In Hilda L. Solis, Secretary of Labor v. Cascom, Inc. and Julia…
U.S. Labor Department and IRS Sign Pacts to Coordinate Their Crack Downs on Independent Contractor Misclassification
By Richard Reibstein Esq. on
Posted in Uncategorized
On September 19, 2011, Secretary of Labor Hilda Solis and IRS Commissioner Doug Shulman signed a Memorandum of Understanding to coordinate both agencies’ law enforcement efforts aimed at businesses that misclassify employees as independent contractors. At a ceremony held at the Labor Department headquarters in Washington, Secretary Solis said, “We’re…
IRS’s New Voluntary Classification Program Adds Another Means to Minimize Independent Contractor Misclassification Liability
By Richard Reibstein Esq. on
Posted in Uncategorized
The IRS yesterday announced a new program to permit taxpayers to voluntarily reclassify independent contractors as employees for federal employment tax purposes.
The program, called the “Voluntary Classification Settlement Program” (VCSP), would allow businesses to voluntarily reclassify workers who currently receive 1099s from the company by making what is referred…
Repeal of Expanded Form 1099; Congressional Appropriation for Worker Misclassification
By Richard Reibstein Esq. on
Posted in Uncategorized
After much fanfare on the topic of Form 1099 reporting, Congress voted and on April 14 the president signed into law a bill repealing the expansion of the Form 1099 reporting requirements. Originally passed as part of the Patient Protection and Affordable Care Act, the new reporting rules would have…