• LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

Minnesota among states eyeing worker misclassification issues

by on
in Compensation and Benefits,Human Resources

While Congress ponders the Employee Misclassification Prevention Act, several states are studying ways to target employers that misclassify their employees as independent contractors.

Minnesota is part of a joint task force studying the misclassification problem. Other task force states are Illinois, Iowa, New York, Washington, Maine, New Hampshire, Vermont, Massachusetts and Rhode Island.

Connecticut Attorney General and Democratic U.S. Senate candidate Richard Blumenthal released his own report calling for greater fines of scrutiny of employers that file 1099s, and greater fines for those who misclassify employees.

That mirrors the likely federal approach. Whether tougher regulation comes from the states or the feds, look for bigger fines for violators, tougher requirements to inform workers of their status, stiffer penalties for retaliating against workers who dispute their status and—significantly—more government auditing of worker classification practices and documents.

Note: With all levels of government facing growing deficits, employee misclassification is just the type of high-profile, politically popular move politicians love. Employers should review all independent contractor relationships to ensure the contractors truly are independent. The U.S Department of Labor and the IRS will look at how much control the employer exerts over the employee/contractor and whether the contractor is truly independent enough to work for other clients as well. Review these with your attorney to determine whether your contractors should be employees or not.

Like what you've read? ...Republish it and share great business tips!

Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...

We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.

The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.

" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/11929/minnesota-among-states-eyeing-worker-misclassification-issues "

Leave a Comment