Independent Contractors

Many “Independent Contractors” May Now Be “Employees”

E. Jason Tremblay and Megan P. Toth Many “Independent Contractors” May Now Be “Employees” According to the Department of Labor On July 15, 2015, the U.S. Department of Labor issued an Administrator’s Interpretation regarding the application of the Fair Labor Standards Act with respect to the increasing misclassification of workers as “independent contractors.” The DOL’s […]

2013 budget approves special funding for the DOL to “Detect and Deter” the misclassification of workers as independent contractors

On February 13, 2012, President Obama announced The Fiscal Year 2013 Budget. Notably, the 2013 Budget once again includes special funding for the Department of Labor to “detect and deter” companies from misclassifying employees as independent contractors. Specifically, 14 million is budgeted for misclassification, including $10 million for grants to States to identify misclassification and […]

Jason Tremblay to present at 4-part seminar series on employment law for businesses

Arnstein & Lehr Chicago Partner Jason Tremblay will speak at the “Employment Law for Businesses” seminars co-hosted by Arnstein & Lehr. The 4-part seminar series covers topics on  employment laws, pitfalls facing employers and easy steps to reduce liability and protect your business. The seminars will take place in Arnstein & Lehr’s Chicago office and by […]

“Job Killer Act” Seeks to Eliminate Worker Misclassification in California

In continuing a trend already underway in the United States regarding the misclassification of employees as independent contractors, California Governor recently approved legislation imposing strict penalties for California employers found willfully to have misclassified workers as independent contractors. The legislation known as the “Job Killer Act” provides for fines of between $5,000 and $25,000 (depending […]

IRS Announces the Voluntary Classification Settlement Program

On the heels of the U.S. Department of Labor’s announcement that it was going to share independent contractor misclassification information with the Internal Revenue Service (“IRS”), the IRS recently announced the implementation of the “Voluntary Classification Settlement Program” (“VCSP”). The VCSP is intended to encourage employers who have misclassified workers, for a relatively small payment […]

DOL Set to Share Employee Misclassification Information with the IRS and States

In what appears to be another example of cracking down on the improper use of independent contractors, the U.S. Department of Labor (“DOL”) recently announced it is entering into agreements with the IRS, as well as some state agencies (including Illinois state agencies), to share information regarding employers who have improperly classified employees. The DOL […]

To Pay or Not to Pay? Beware When Hiring Interns

The current economic situation in this country has led to an increase in the use of unpaid internships by companies, especially unpaid internships for young people who have been hit particularly hard by unemployment.  However, employers need to be extra careful in this regard since the U.S. Department of Labor (“DOL”) recently announced that it […]

Government Set To Crack Down on the Use of Independent Contractors

The legal landscape regarding the use of independent contractors has dramatically changed over the past several years.  For decades, employers’ use of independent contractors was not only rarely challenged, but it was also a way they could save significantly on labor and other costs associated with hiring employees.  In this tough economy, employers may be […]