In my last post I shared my ABI Quick Bits Interview on Wage & Hour Lawsuits. In that interview I discussed how I often hear employers reference "1099 employees". I cautioned that you should make sure not to confuse independent contractors and employees. They are separate worker classifications and it’s important the your workers are classified correctly.
A recent post from Epstein Becker & Green builds on that thought by stating that Independent Contractor Misclassification Should Remain a Key Area of Concern for Employers. The post discusses on the Department of Labor will continue to work with state and federal agencies, including the IRS, to share information and jointly investigate worker misclassification.
With the re-election of President Obama, employers can expect more awareness around worker misclassification issues by federal agencies in particular because of the Affordable Care Act ("ACA") 50-employee threshold. Federal and state agencies will likely have a watchful eye on employers teetering on that mark.
The penalties and expenses for misclassification of your workers are significant. It is recommended that you conduct a wage and hour audit periodically to make sure your business is in compliance.