April 20, 2021

What’s in a Name? How about $358,000?!

The U.S. Department of Labor (DOL) announced today that is what it will cost one employer for improperly classifying 50 workers as independent contractors instead of employees. That was strike #1.

Then, those employees were not paid time-and-one-half their regular rate of pay for hours worked over 40 in a work week. Oops – strike #2.

That’s not all employers need to consider. How you define a worker as an employee or independent contractor depends upon whom you ask.  The DOL and IRS have different definitions (and I use the word “definitions” loosely).  Add to that, many states have their own definitions. Even within a state there may be more than one definition, such as under a state’s workers’ compensation or unemployment insurance codes, state administrative agency rules or regulations.

How do you try to get this right the first time? For some tips, the latest news and trends, join FiveL Company’s May 26th webcast, “Are You My Employer?…” 10:00 – 11:15 a.m. ET.