The saga continues.
No, we’re not talking about the further adventures of Boba Fett in Star Wars, but independent contractor misclassification across the country.
We’ve written at length about the costly dangers of compensating your employees as though they were freelance workers, the differences between W2s and 1099s, and the steps to take to avoid noncompliance.
Hopefully, for your company, the advice is sticking.
But elsewhere in the U.S., mistakes continue to be made and crackdowns continue to mount, with several states introducing additional disciplinary legislation for employers that were in the wrong.
- – Employment law AB 5892 (SB 3922) took effect on Jan. 1 in New Jersey. The law levies a $5,000 fine (and subsequent discretionary criminal action) against companies who misclassify in an attempt to avoid insurance premiums, placing them in violation of the state’s Fraud Protection Act.
- – In Oregon, the definition of “worker” has been altered under the state’s worker compensation law (Oregon HB 3188) to describe any individual aside from an independent contractor who provides a service for pay. The law also amends its definition of “casual labor” to that which costs less than $1,000.
- – In early January, the Department of Labor’s Wage and Hour Division and the National Labor Relations Board announced a collaboration that would aggressively enforce the Fair Labor Standards Act (FLSA) and the National Labor Relations Act. The collaboration would also direct greater scrutiny on independent contractor arrangements, including employers who utilize and exact excessive control of individual independent contractors for primary services.
The moral of the story is – and remains – clear. The failure to identify your employees and freelancers can lead to all sorts of trouble. The misclassification saga continues. Don’t allow oversights to do the same. Avoid contractor misclassification penalties by outsourcing your compliance concerns to an Employer of Record. Maslow Media Group will take the reins on business compliance measures and protections, helping you to sidestep a loss of funds, freedom, and reputation. Contact us today to learn more.