‘Fissured workplace’ is focus of DOL misclassification initiative — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
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‘Fissured workplace’ is focus of DOL misclassification initiative

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in Centerpiece,Compensation and Benefits,Human Resources

by Richard Reibstein, Janet Barsky and Albert Barrueco, Esqs., Pepper Hamilton LLP

Department of Labor logoThe Wage and Hour Division (WHD) of the U.S. Department of Labor recently submitted its request to Congress for $277 million in funds for fiscal year 2016, an increase of $49 million. More than $30 million would be allocated to hire 300 investigators “for additional enforcement staff and support.”

The request focused particular attention on what the WHD refers to as the “fissured workplace,” which is shorthand for business models that use nonemployees to provide services to clients or supplement their workforce. According to the DOL’s request, these types of business models “function to obscure, or eliminate entirely, the link between the worker and the business.”

Old issue, new emphasis

The most common business model in the WHD’s sights is the virtually unlimited and increasingly common array of independent contractor (IC) relationships. This...(register to read more)

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