The IRS earlier this week temporarily expanded the Voluntary Classification Settlement Program (VCSP), which was the subject of a prior post, to permit taxpayers who do not meet all of the conditions for the original Program to reclassify independent contractors as employees for federal employment tax purposes. The expanded
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New Misclassification Bill Introduced in Congress: The “Independent Contractor Tax Fairness and Simplification Act of 2012” Seeks to Eliminate “Safe Harbor” for Businesses
By Richard Reibstein Esq. on
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Misinformation about Independent Contractor Misclassification
By Richard Reibstein Esq. on
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A year and a half ago today, my blog post was titled, “How to Make Sense Out of All Those Alerts About IC Misclassification.” I noted that, on a daily basis, I see an array of articles by lawyers warning businesses of impending doom if they continue to use independent…
Obama 2.0 and Independent Contractor Misclassification: The Next Four Years of Federal Legislative and Regulatory Activity
By Richard Reibstein Esq. on
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The last four years started out with expectations that the federal government would enact legislation to curtail misclassification of employees as independent contractors (ICs). Yet, not a single bill was enacted despite strong support by President Obama for Congressional action in the area of IC misclassification. Federal regulators, though, were…
Misclassifying the “Underground Workforce” as a Form of Independent Contractor Misclassification
By Richard Reibstein Esq. on
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The lead story in today’s front page of the Texas Tribune reports on a hearing before the Texas Workforce Commission where the testimony focused on the intersection of undocumented aliens and independent contractor misclassification. The hearing was held in advance of the Workforce Commission’s preparation for its upcoming legislative…
Military Government Contractor and Health Care Network Sued for Independent Contractor Misclassification
By Richard Reibstein Esq. on
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On October 2, 2012, a class action lawsuit was filed against MHN Government Services and its parent, Managed Health Network (MHN), claiming that the government contractor misclassified over 1,200 employees as independent contractors and, as a result, failed to pay massive amounts of overtime pay required under the federal wage…
Insurance Company Wins Challenge to its Independent Contractor Relationship with Agent
By Richard Reibstein Esq. on
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Having previously prevailed in two prior challenges by agents who claim they were not independent contractors (ICs) but rather employees, an insurer wins for a third time in a lawsuit by a Washington State insurance agent.
Claiming he was misclassified as an IC instead of an employee, the agent brought…
White Paper: Independent Contractor Misclassification Update 2012 – How Companies Can Minimize the Risks
By Richard Reibstein Esq. on
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“Misclassification of employees as independent contractors” is now a common phrase uttered by state and federal legislators and regulators. State task forces have been formed to crack down on businesses that do not pay unemployment insurance and workers’ compensation premiums or withhold taxes for workers whom the states believe…
Company Wins Driver Class Action Alleging Independent Contractor Misclassification
By Richard Reibstein Esq. on
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Editors’ Note: The court decision by a federal district court that was the subject of this blog post was appealed to the U.S. Court of Appeals for the Third Circuit, which asked the New Jersey Supreme Court to articulate what test federal courts should use in determining the independent contractor…
The Fair Playing Field Act of 2012: Congress Is Trying Once Again to End ‘Safe Harbor’ for Businesses that May Have Misclassified Employees as Independent Contractors
By Richard Reibstein Esq. on
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