On March 1, 2012, 33 co-sponsors in the House introduced the Fair Playing Field Act of 2012 (H.R. 4123), a bill that appears to be identical to the Fair Playing Field Act of 2010 (H.R. 6128), which was never acted upon by Congress. This is the
misclassification liability
U.S. Budget: Labor Department Gets Additional Funds to “Detect and Deter the Misclassification of Workers as Independent Contractors”
By Richard Reibstein Esq. on
Posted in Uncategorized
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…
“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,…
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…
Senate Re-Loads on Independent Contractor Misclassification: New Bill Characterizes Misclassification as “Payroll Fraud”
By Richard Reibstein Esq. on
Posted in Uncategorized
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…
Utah Legislators Seeking to Clamp Down on Creative Efforts to Avoid Labor Costs and Misclassification Liability
By Richard Reibstein Esq. on
Posted in Uncategorized
The Utah House approved on February 10, 2011 a bill (S.B. 35) targeting construction companies that classify individuals as owners in order to avoid paying for workers’ compensation insurance and unemployment insurance or withholding taxes. The bill, called the Construction Licensees Related Amendments, seeks to make ineffective a tool…
Pennsylvania Labor Department Issues Notices and Complaint Forms Under Construction Workplace Misclassification Act
By Richard Reibstein Esq. on
Posted in Uncategorized
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
By Richard Reibstein Esq. on
Posted in Uncategorized
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. …