We’ve blogged before about the risk of misclassifying employees as independent contractors. Today’s Plain Dealer highlights the growing concern with this prevalent practice, which results in employers avoiding paying benefits, taxes, and workers’ compensation. U.S. Senator Sherrod Brown recently introduced a Senate bill to strengthen labor laws in addressing this issue. And Secretary of State Richard Cordray stated he has over 800 cases pending against employers across the state for alleged misclassifying.
If your business uses “independent contractors,” we advise you check with experienced labor and employment counsel to ensure your classification holds up in light of IRS guidance and judicial interpretations.