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by Craig Brandt, Esq.

The federal Government Accountability Office (GAO) recently released a detailed report to congressional leaders that culminated in a set of recommendations to address the persistent, widespread problem of employer misclassification of employees as independent contractors.

The report—read it at www.gao.gov/new.items/do9717.pdf—urges the U.S. Department of Labor and the IRS to step up enforcement efforts against employers.

Given the increased attention, now is a particularly opportune time for employers that have classified any workers as independent contractors to carefully review those decisions.

A variety of violations

While most workers are treated as employees and paid accordingly, in 2005 approximately 10.3 million U.S. workers (7.4% of the workforce) were classified as contractors.

While misclassification of employees as independent contractors isn’t itself illegal, it can cause viol...(register to read more)

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