Senator Sherrod Brown (D-OH) announced plans yesterday to introduce new legislation that would close a loophole in the tax code that allows employers to openly treat full-time workers as independent contractors in order to avoid providing them with earned safeguards and benefits – like payroll tax withholding, overtime, unemployment insurance, and workers’ compensation.
Uber’s recent employee misclassification mess can teach start up companies a few things to ensure they avoid the same issues.
Given the legislators’ focus on the issue and the progress made during the 2015 session, the bill will likely be revisited during the 2016 session. The bill includes the creation of an Employee Classification Division within the Department of Revenue, a 10 point test to determine if a worker has been misclassified, and civil penalties for offenders.
The National Labor Relations Board (NLRB) has created its own test for determining who’s an independent contractor and who isn’t.
A new Workplace Fraud Unit in RI just reached a settlement with Cardoso Construction LLC, forcing them to pay more in excess of $730,000 in back wages, interest, and penalties. Raimondo has a new four point action plan which can be read in the full press release.
For the second time this month, HP has forced some of their employees to become independent contractors for outside firms while continuing to work on HP projects. If they chose not to, they would be laid off without severance.
Cheerleaders for professional sports teams in California will have to be classified as employees eligible for overtime, sick days and other protections under a bill signed Wednesday by Governor Jerry Brown. The new law goes into effect on January 1, 2016.