Economic volatility has led many employers to use so-called “independent contractors,” in an effort to avoid payroll and other administrative costs. At the same time, cash-strapped state and federal governments looking for new sources of revenue have stepped up audits and fraud investigations to unearth employees masquerading as “independent contractors.” How an employer classifies a worker—even if the worker agrees to the “independent contractor” label—does not convert a common law employee into an independent contractor. Rather, the IRS, Department of Labor, and courts apply various tests to determine whether the employer exercises sufficient control over the worker to establish an employment relationship. This seminar reviews the exposure for employers misclassifying employees and how to analyze whether workers are “employees” or “independent contractors” with the goal of avoiding or defending against a governmental audit.
This seminar will:
Identify the risks associated with misclassification;
Review the factors considered by the IRS, Department of Labor and courts in determining whether a worker is an independent contractor or employee;
Analyze wage and hour concerns for misclassified employees, as well as exposure under the FMLA, ADA, and state and federal anti-discrimination laws;
Consider the impact on employee benefit plans if “independent contractors” turn out to be employees;
Review pending legislation targeting the misclassification of workers; and
Offer guidance for minimizing the risks of exposure for back taxes, wage and hour violations, penalties and other liability.