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Saturday, August 01, 2015

Bill Aims To Stop Employers From Incorrectly Classifying Employees As Independent Contractors

In general, an independent contractor or freelancer is a worker who runs their own business but is hired by others for specific purposes and projects. But a growing number of employers have been using the independent contractor label on what had long been considered employees, often with the goal of shedding the cost of contributing to insurance and retirement benefits. A new piece of legislation seeks to make sure that businesses aren’t mislabeling employees as contractors.

The Payroll Fraud Prevention Act of 2015 [PDF], introduced by Sen. Robert Casey of Pennsylvania and Sen. Al Franken of Minnesota, would amend the Fair Labor Standards Act to require that workers understand whether they are being classified as an employee or a non-employee contractor, and what the implications are for non-employees in terms of benefits, and legal protections generally afforded to employees.

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3 comments:

Anonymous said...

Daily times carriers will welcome a law like that....

Anonymous said...

No unemployment insurance benefits if you work as a 1099 contractual employee.

lmclain said...

Look.
When you are down to your last 10 million dollars, SOMETHING has to give.....
Cut hours so no one gets benefits. Cut off health insurance and throw them under the obamacare bus. Now, don't even call them "employees"....it will make it hard buying that vacation home in the Colorado mountains and the new Benz is definitely out.
You understand their pain and suffering, don't you?
Keep cheering.