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
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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…
Utah Legislators Seeking to Clamp Down on Creative Efforts to Avoid Labor Costs and Misclassification Liability
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
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…
President Obama’s State of the Union Speech Highlights Federal Focus on Independent Contractor Misclassification Issue and 1099’s
Listening to President Obama address issues of national importance during his 2011 State of the Union address last night, anyone familiar with independent contractor compliance and 1099 issues could not help but notice two meaningful references to these two related matters, both of which gained widespread attention in 2010.
1. …
Maine Governor Takes Positive Step to Clarify State Independent Contractor Laws
According to an article published in the Bangor Daily News on January 23, 2011, Maine Governor Paul LePage has abolished a task force created by his predecessor to examine independent contractor misclassification in Maine and instead has taken a step that Congress may also wish to consider: using the federal…
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…