Comments for Independent Contractor Compliance Blog http://www.collabrus.com/collabrus_blog Independent contractor (1099) compliance, professional payrolling, contingent workforce managed services Tue, 27 Apr 2010 17:29:28 +0000 hourly 1 http://wordpress.org/?v=3.4.2 Comment on Independent Contractor Compliance and the Boy Who Cried Wolf by Walter Branam http://www.collabrus.com/collabrus_blog/2010/04/20/independent-contractor-compliance-and-the-boy-who-cried-wolf/#comment-3082 Walter Branam Tue, 27 Apr 2010 17:29:28 +0000 http://www.collabrus.com/collabrus_blog/?p=185#comment-3082 Often both federal and state enforcement agencies become alerted to industry-wide IC compliance issues when enough individulas complain or there are civil class-action suits filed, which typically become public information. Also, it is not unusal for the attornies representing the class action plaintiffs to contact the IRS or state auditors (with their clients’ permission) and provide detailed informaiton for investigation. Most enforcement agencies will use the information to conduct audits or investigations. My guess is if this issue becomes big enough you will see this happen. Often both federal and state enforcement agencies become alerted to industry-wide IC compliance issues when enough individulas complain or there are civil class-action suits filed, which typically become public information. Also, it is not unusal for the attornies representing the class action plaintiffs to contact the IRS or state auditors (with their clients’ permission) and provide detailed informaiton for investigation. Most enforcement agencies will use the information to conduct audits or investigations. My guess is if this issue becomes big enough you will see this happen.

]]> Comment on Comcast Corporation is Hit with a Class Action Lawsuit for Worker Misclassification by Walter Branam http://www.collabrus.com/collabrus_blog/2010/03/18/comcast-corporation-is-hit-with-a-class-action-lawsuit-for-worker-misclassification/#comment-3081 Walter Branam Tue, 27 Apr 2010 17:28:26 +0000 http://www.collabrus.com/collabrus_blog/?p=180#comment-3081 I agree. Between Massachusetts, New York and California it’s difficult to decide which state is the toughest on employers for misclassifying workers. Massachusetts has one of the toughest IC versus employee standards in the nation, with the fines and penalties to match. In the past I have noted several Massachusetts cases that pushed the limits beyond anything else I’d seen to that point. Here are just a couple examples. I know there are many more. For example: In Massachusetts strippers are employees! A Massachusetts the judge ruled strippers were deprived of wages and tips and inappropriately charged for expenses. The judge found that King Arthur’s Lounge: • Did not pay the strippers any salaries, • Required each to pay $35 to perform each night, • Kept $10 of every $30 made for “private dancing’’ in secluded booths. The judge ruled the lounge was charging the employees to work there and imposed severe penalties! Even though you earn more as an IC than you would as an employee, in Massachusetts you can still sue for overtime. 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, Aug. 21, 2009) The final decision held the engineer was an employee entitled to all the benefits an employee should receive in addition to his higher IC pay rate. I agree. Between Massachusetts, New York and California it’s difficult to decide which state is the toughest on employers for misclassifying workers. Massachusetts has one of the toughest IC versus employee standards in the nation, with the fines and penalties to match. In the past I have noted several Massachusetts cases that pushed the limits beyond anything else I’d seen to that point. Here are just a couple examples. I know there are many more. For example:

In Massachusetts strippers are employees! A Massachusetts the judge ruled strippers were deprived of wages and tips and inappropriately charged for expenses. The judge found that King Arthur’s Lounge:

• Did not pay the strippers any salaries,
• Required each to pay $35 to perform each night,
• Kept $10 of every $30 made for “private dancing’’ in secluded booths.

The judge ruled the lounge was charging the employees to work there and imposed severe penalties!

Even though you earn more as an IC than you would as an employee, in Massachusetts you can still sue for overtime.

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, Aug. 21, 2009) The final decision held the engineer was an employee entitled to all the benefits an employee should receive in addition to his higher IC pay rate.

]]> Comment on Comcast Corporation is Hit with a Class Action Lawsuit for Worker Misclassification by Ronald Wainrib, Esq. http://www.collabrus.com/collabrus_blog/2010/03/18/comcast-corporation-is-hit-with-a-class-action-lawsuit-for-worker-misclassification/#comment-3027 Ronald Wainrib, Esq. Tue, 27 Apr 2010 05:05:44 +0000 http://www.collabrus.com/collabrus_blog/?p=180#comment-3027 Walter, Glad to see someone else is following current legal developments in this field beyond the IRS and DOL enforcement initiatives. As a Massachusetts lawyer and expert in this field, may I ask why you did not include the fact that violators of the Massachusetts' Independent Contractor Law are subject to both criminal and civil penalties, with criteria for proving independent contractor status that are more stringent than the IRS worker status test. (There is a strong bias and presumption that a worker is an employee, not a contractor). Walter,

Glad to see someone else is following current legal developments in this field beyond the IRS and DOL enforcement initiatives.

As a Massachusetts lawyer and expert in this field, may I ask why you did not include the fact that violators of the Massachusetts’ Independent Contractor Law are subject to both criminal and civil penalties, with criteria for proving independent contractor status that are more stringent than the IRS worker status test. (There is a strong bias and presumption that a worker is an employee, not a contractor).

]]> Comment on Independent Contractor Compliance and the Boy Who Cried Wolf by Michael Scantland http://www.collabrus.com/collabrus_blog/2010/04/20/independent-contractor-compliance-and-the-boy-who-cried-wolf/#comment-2937 Michael Scantland Sun, 25 Apr 2010 15:25:28 +0000 http://www.collabrus.com/collabrus_blog/?p=185#comment-2937 Ive been misclassied as an independent contractor but treated as an employee in every aspect, by the IRS and FSLA. I work in the cable business "Larry the Cable guy" Every state acrross the USA has compainies like the one I worked for misclassifing its workers to cut costs and most if not all dont pay any taxes, im gulity of it, it was so simple, the company gives you a check and you cash it, make up some fake deductions and your getting money back, I worked 80 hours a week and was told what to do, how to do it and couldnt work for anyone else or id risk getting fired. There needs to be a mnajor task force in place to audit these companies and bring them into compliance. I was also hurt on the job with a serious back injury which has left me hurt for the rest of my life.. My website has all the info on my Federal case as it updates. Please visit to see the company I worked for the past 8 years. Ive been misclassied as an independent contractor but treated as an employee in every aspect, by the IRS and FSLA. I work in the cable business “Larry the Cable guy” Every state acrross the USA has compainies like the one I worked for misclassifing its workers to cut costs and most if not all dont pay any taxes, im gulity of it, it was so simple, the company gives you a check and you cash it, make up some fake deductions and your getting money back, I worked 80 hours a week and was told what to do, how to do it and couldnt work for anyone else or id risk getting fired. There needs to be a mnajor task force in place to audit these companies and bring them into compliance. I was also hurt on the job with a serious back injury which has left me hurt for the rest of my life.. My website has all the info on my Federal case as it updates. Please visit to see the company I worked for the past 8 years.

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