Gone are the days of government agencies and regulatory authorities blindly accepting a business classification of individuals as "independent contractor." Indeed, state and federal governments have started to focus on the misclassification of employees as independent contractors. This increased scrutiny makes it critical for employers to determine whether their workers are employees or independent contractors.
Several states have implemented initiatives to ensure that companies are not avoiding overtime pay, unemployment compensation, payroll taxes and employment-related rights and benefits by misclassifying employees as independent contractors. For instance, California has recently sent "employment relationship" questionnaires to "independent contractors" to ensure that those individuals are not more rightfully classified as employees. Moreover, the Illinois Employee Classification Act went into effect in 2008. This law, which applies to the "construction" industry, prohibits the misclassification of employees as independent contractors and provides stiff fines for non-compliance.
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About Me
- Thomas Lawson
- Thomas C. Lawson, CFE, CII is President and Founder of APSCREEN International, the world’s leading full service Consumer Reporting Agency. Lawson is called “one of the real pros” as he has helped to reshape laws including employment screening permissible credit reporting, asset discovery and fraud examination. Tom is a Life Member of: ACFE, ASIS, SHRM, PIHRA, PNRRA, PRRN, CII, WAD, WIN, FCAOC and OCEMA.
