Independent Contractor Compliance Blog

A “One-Two Punch” for Businesses that Misclassify Workers

In 2012 both state and federal governments are turning up the pressure on employers that misclassify workers.  Governments need money and view the additional taxes, penalties and interest for violators as a way to get it. At the Federal level Obama’s 2012 budget provides for increased worker misclassification enforcement. These paragraphs were taken directly from [...]

California Has Raised the IC Misclassification Stakes

Governor Brown recently signed Senate Bill 459 into law making it illegal to willfully misclassify employees as independent contractors.  The law provides authority to the California’s Labor Workforce Development Agency to assess civil penalties and take action against a person or employer violating the new law. This law allows California’s Labor Commissioner to levy a [...]

Are You Waiting for an Audit Before Protecting Your Company?

Not long ago a friend of mine who worked for a California company contacted me and asked if I would help him out with an audit by Employment Development Department (EDD) by providing some advice. The audit was being conducted as a result of a claim for unemployment insurance benefits by a former consultant they [...]

Are Attorneys Subject to the Same Common Law Rules as Other Professions?

That was a question recently asked to me by a lawyer friend. He had observed that many attorneys seemed to be treated as independent contractors (IC) even though they were working full-time for a single law firm, or exclusively for a single business, under the direct control and supervision of the owner. “Why is that?” [...]

New NLRB Edict: Employers Must Notify Employees of Right to Organize

The National Labor Relations Board (NLRB) has issued a Final Rule that will require employers to notify employees of their rights to organize under the National Labor Relations Act, effective November 14, 2011. Employers whose workplaces fall under the National Labor Relations Act will be required to post the notice where other workplace notices are [...]

The Moonlighting DJ/Attorney/Independent Contractor

He played mostly soft rock, which worked well for the group in this party, and had a good DJ’s voice. All of us danced and had a good time. Then I overheard someone mention the DJ by his first name with the comment, “I didn’t know Jim was a DJ! When does he get the [...]

Have You Allowed a Genuine Independent Contractor to Become a Misclassified Employee?

It is very common for a company to engage qualified independent contractors (ICs) who: Are true experts Have other clients Market their services to gain new clients Work for a fixed price for a completed job Pay their own expenses Work for several clients (sometimes even competitors) at the same time However, many times these [...]

Are You and Your Consultants Pursuing The American Dream?

The American Dream is founded on the belief that an individual can build a business with determination and hard work, starting with nothing except an idea or a skill.  Being your own boss — an independent contractor — is at the heart of this dream. Successful independent contractors eventually grow their small business into a [...]

How Best to Avoid Legal Headaches

If your company is audited by a tax agency and you appeal their decision, typically the case will then be decided by an Administrative Law Judge (ALJ).  There are fewer strict requirements to be an ALJ than for a full-judicial judge in either a civil court or a federal court.  This is important to know [...]

Studies Show Many Boomers Are Not Ready for Retirement

A recent survey by a commercial financial and retirement investment planning firm reported that as many as 64% of those over 55 are not prepared to retire in the traditional sense.  This is due mostly as a result of the recent financial market turmoil, however other factors play a role. The report indicated that 77% [...]

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