Are you gambling with your company’s future?
If you employ “independent contractors” or “freelancers” who might be considered employees are you taking a gamble with their classification? Through the years, the employee classification issue has caused problems for businesses ranging from Lowe’s to FedEx and this issue is only heating up. But if you assume it’s only the IRS who’s paying attention you might be making a bad bet.
According to an article in Forbes Finance, written by John Thompson of Fisher & Phillips, a national labor law firm. The US Labor Department has set its priority on identifying situations where workers are erroneously considered not to be employees or other covered individuals for the purpose of complying with minimum-wage, overtime, and record keeping requirements and child-labor restrictions of the FLSA and similar federal wage laws it enforces. The agency calls this its Misclassification Initiative, and these efforts have resulted in significant liability.
The US Labor Department’s misclassification investigations are underway across the country. Moreover, USDOL has entered alliances to promote enforcement and information-sharing with the U.S. Internal Revenue Service and with officials in over 14 states so far.
It’s time to get your classification on.
In the current legal climate, the best move is to evaluate without delay how you are classifying workers. Gigomy is the industry’s most comprehensive Independent Contractor evaluation service. Our program is designed to determine if a worker should be engaged as an Independent Contractor versus employee, and protect companies from the risks of 1099 misclassification. When it seems like the deck is stacked against you, remember with Gigomy you have an ally. Contact us today to set up your free workforce evaluation!