Posts tagged Task Force on Worker Misclassification
Worker misclassification could cost big bucks for small businesses
February 22, 2024 // Audited companies found to have misclassified employees face significant penalties. Just federally that means repaying all the employer portions of taxes that had been paid by employees and a portion of the employee contribution. There are also interest and penalty costs. “That’s just the tax piece,” Panning said. “If there’s a class action lawsuit by these independent contractors saying we’re employees, we deserve the benefits, then it’s even more because you get into the court system.”
Minnesota’s Misguided Crackdown Of Independent Contractors
November 1, 2023 // Much to the chagrin of Minnesota regulators, rideshare drivers overwhelmingly identify as independent contractors and not employees. Uber and Lyft drivers have, instead, advocated for portable benefits as a means to insulate themselves from forced reclassification. Utah recently became the first state to pass this reform, while states like Massachusetts are mulling similar bills and will also have an opportunity to vote on a 2024 ballot measure to maintain their IC status. Minnesota should study California Assembly Bill 5 and similar efforts that displaced workers and left them worse off under the guise of “fighting” misclassification.