Independent Contractor Compliance Blog - by Collabrus™

FedEx to pay Massachusetts $3 million in Misclassification Case Settlement, But There’s More…

According to an article in Telegram.com, based in Worcester, Massachusetts, the state attorney general’s office announced FedEx Ground agreed to pay Massachusetts $3 million to settle claims the company misclassified its drivers as independent contractors.
The article reports that, “The attorney general said the company had gained an unfair competitive advantage by classifying the drivers as […]

Classic Misclassified Worker Scenario

One more domestic story from my stay-at-home week: the neighbor’s kid takes a freelance job.
I was recently home for a week watching television, sleeping and fighting off a bug. I was feeling better later in the week and took a walk around the neighborhood. As I passed my neighbor’s house, their 23 year old daughter […]

Predators Circling in the Water - Searching for Misclassified Workers

I was recently home with the flu, and couldn’t sleep during the day, so I watched some daytime television. I saw many TV commercials encouraging workers-both IC’s and employees-to sue the companies that feed them.
If you spend your daytime hours working, you may not realize there are packs of predators stalking the underemployed, the unemployed, […]

Massachusetts Court Allows Employee Damages to an Independent Contractor

Massachusetts-The State Supreme Judicial Court recently issued a ruling that increases the amount of damages a worker can receive if he or she has been misclassified as an independent contractor, even though he was paid at a higher rate than he would have gotten as an employee.  (Somers v. Converged Access, No. SJC-10347)
The company attempted […]

Treasury Department Highlights the Gap in IRS Enforcement of Employee Misclassification

In a report issued last year, the U.S. Treasury Department’s Inspector General bureaucratically criticized the IRS, saying that the misclassification of employees as independent contractors is a nationwide issue affecting millions of workers that continues to grow and contribute to the federal tax gap.*
 
The report said, “The IRS…does not have an agency-wide employment tax […]

Recent Surveys Indicate 40% of Businesses are Planning to Rehire Workers

If you search the web you’ll find no shortage of news stories about how the economy is beginning to pick up, albeit slowly, and that many businesses who had downsized last year are beginning to replenish their labor force.
For example:

CareerBuilder/USA Today surveyed 2,924 hiring managers and reported 26% of employers have already started extending job […]

The Perfect IC Compliance Storm is Here—Have You Protected Your Business?

As long ago as November 2008, I was predicting a crack down on Independent Contractor Compliance, and the broader issue of rampant worker misclassification.
Obama Wins-Tax Loopholes Will Tighten
Then in February 2009, I predicted there was a storm on the horizon-An IC Compliance Storm.
The Perfect IC Compliance Storm is on the Horizon
Almost every week I have […]

Survey Confirms California Has One of the Worst Legal Climates in the Nation for Employers

California’s lawsuit climate is one of the worst in the nation, joining Alabama, Louisiana and West Virginia, according to a U.S. Chamber Institute for Legal Reform report released last week. 
This conclusion was based upon an annual survey asking 1,482 U.S. corporate lawyers, who represent companies with at least $100 million in revenue, to rank […]

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