by Richard Reibstein, Lisa Petkun and Jonathan Clark, Esqs., Pepper Hamilton LLP
Companies that use freelancers, consultants, per diems, long-term temps and other contingent workers are under assault. The federal government is poised to take a leading role in cracking down on employers it suspects of misclassifying employees as independent contractors.
The feds aren’t alone. Labor unions are seeking to organize employees they claim have been misclassified as independent contractors.
Class-action plaintiffs’ lawyers are seeking out workers who might have been misclassified and thus been deprived of overtime pay and pension and medical benefits.
State regulators are seeking back taxes and premiums for unemployment and workers’ compensation funds.
Lax government enforcement
For years, lax enforcement by federal and state agencies created a comfort zone in which employers could increase their use of independent contractors. But ...(register to read more)