Determining whether a worker qualifies as an independent contractor or not can be a complicated issue. The fundamental problem is that no single, uniform test – let alone a single factor – can be used to determine who qualifies. Federal and state agencies and courts use different criteria and tests. Businesses must weigh all these factors against the inherent risk of misclassifying workers when making these critical decisions.
Some factors may indicate that the worker is an employee, while other factors indicate that the worker is an independent contractor. There is no “magic” or set number of factors that “makes” the worker an employee or an independent contractor. And the label assigned to the worker – for example, calling someone a “freelancer,” a “gig” or “on demand” worker, a “vendor”, a “subcontractor” or any number of the other frequently-used monikers in current parlance – does not determine the viability of independent contractor classification. And factors which are most relevant in one auditing agency, state, or federal court may not be as important in another.
There is simply no substitute for making a detailed, fact-specific assessment of each worker using a multi-factor classification test specific to the location of your business and where each of your workers resides and works. The burden of proof is on the organization engaging the worker and the stakes for mistakes are high.
We know that keeping up with independent contractor compliance and worker misclassification is time-consuming, complicated and frustrating. You’re the one whose neck is on the line if the worker is misclassified or if you miss a compliance piece, such as California Assembly Bill 5 (AB-5). Managing workforces takes valuable time away from running your business, as you concentrate on complying with ever-changing and seemingly contradictory employment laws.
We would like to share more information about recent developments in the independent contractor compliance arena to help ease some of your understandable concern and confusion. Our overall goal will be to provide you with some guidelines and tools to assist in your contingent workforce management practices. Join us for “Independent Contractors – Identifying the Misnomers and Clarifying the Confusion”, a complimentary webinar, on February 27th, 2020, 2:00 PM EDT, presented by Denis Kenny, Partner/Attorney with Scherer Smith and Kenny LLP, and hosted by Connie Wendt, Vice President Compliance & Relations at ClearPath.
This webinar will provide SHRM Recertification credit, 1 PDC credit. Recertification is required every three years. Professionals need to earn 60 professional development credits (PDCs) in order to recertify.
In our upcoming webinar we’ll address some fundamental questions:
- What is happening with Independent Contractor Compliance?
- Latest on AB-5, ABC Test, the “Integral” or “usual course” of your business piece, and EDD letter
- Exempt Occupations and Borello
- Why other states are starting to follow suit
- What about possible federal legislation?
- How workers are fighting against AB-5
- Define who is an Independent Contractor
- Clarifying the Confusion, who you should ask for guidance on IC compliance?
- What are the differences in asking your accountant versus outside legal counsel for guidance?
- When to ask your accountant
- When to ask your attorney
You’ll also have the chance to ask your toughest questions with an employment attorney.
Please join us!
Register Here: https://zoom.us/webinar/register/WN_wFRdXWEySWWSr1zi60_zmg