While Congress ponders the Employee Misclassification Prevention Act, several states are studying ways to target employers that misclassify their employees as independent contractors.
New York is part of a joint task force studying the misclassification problem. Other task force states are Illinois, Iowa, Maine, Massachusetts, Minnesota, New Hampshire, Rhode Island, Vermont and Washington.
Connecticut Attorney General and Democratic U.S. Senate candidate Richard Blumenthal released his own report calling for 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, stiff penalties for retaliating against workers who dispute their status and—significantly—more government auditing of worker classification practices and documents.