On December 12. 2012, Rep. Erik Paulsen (R. Minn.) introduced a bill that bears many similarities to a bill introduced earlier this year by 33 Democrats. The Independent Contractor Tax Fairness and Simplification Act (H.R. 6653) would, like the Fair Playing Field Act (H.R. 4123) introduced
independent contractor liability
Cable Company’s Installers Were Misclassified as Independent Contractors: Another Business that Failed to Properly Structure and Document Its Independent Contractor Relationship
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
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
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…
Senate Re-Loads on Independent Contractor Misclassification: New Bill Characterizes Misclassification as “Payroll Fraud”
On Friday, April 8, 2011, Senators Sherrod Brown (D-Ohio), Tom Harkin (D-Iowa), and Richard Blumenthal (D-Conn.) introduced the Payroll Fraud Prevention Act (S. 770), a trimmed-down version of the Employee Misclassification Prevention Act bill that was introduced into both houses of Congress a year ago. Taking a cue…
Pennsylvania Labor Department Issues Notices and Complaint Forms Under Construction Workplace Misclassification Act
The Pennsylvania Construction Workplace Misclassification Act was signed into law on October 13, 2010. Also called House Bill 400 and Act 72 of 2010, the new law went into effect on February 10, 2011.
Earlier this month, the Pennsylvania Department of Labor and Industry published three documents on its website…
Independent Contractor Misclassification Ruling in Favor of FedEx Ground Confirms Critical Role of IC Agreements and Policies and Procedures in Class Action Litigation
Last month, the federal district court judge assigned to handle dozens of state law class action claims brought around the country against FedEx Ground by its drivers, who have claimed they are “employees” misclassified as independent contractors (ICs), issued a comprehensive ruling covering 42 of the of the remaining lawsuits. …
Truck Delivery Firm Pays Out $2.25 Million to Settle Two Class Action Misclassification Cases
3P Delivery, Inc. provides delivery services for major retailers. It has historically classified its drivers as independent contractors and not employees. 3P Delivery was sued in 2008 by two drivers in Oregon and two drivers in Washington for misclassification, claiming that “3P engages in a fraud designed to make…
Yet Another Class Action Certified in a Misclassification Case: Adult Dancers Claim They Are Not Independent Contractors But Rather Employees Deprived of Overtime
Yesterday a federal court in Manhattan granted a motion for class action certification to a group of adult dancers who have worked at the Penthouse Executive Club in New York City. They alleged, among other things, that the Club violated the federal Fair Labor Standards Act (FLSA) by failing to…
Update: New York’s Construction Industry Misclassification Law Takes Effect Today; Ends Lawful Use of Many Independent Contractors and Requires Posting of Government Notice
The New York Construction Industry Fair Play Act goes into effect today, as previously noted in a detailed posting on this site and in an article published in the New York Law Journal by a publisher of this blog. From this point forward in the construction industry, companies and their…