On April 10th, the Department of Labor released its fiscal year 2014 budget request. As reported in a press release describing the budget request, the DOL has asked for $12.1 billion in discretionary funding to support “President Obama's plan to strengthen the economy and grow the middle class through continued investments in training and resources for job seekers.” The request seeks significant resources devoted to putting veterans to work, and to creating employment opportunities for the long-term unemployed and low-income adults and youths.
Employment lawyers anticipate that employers’ social media policies and their use of independent contractors will be hot button issues in the New Year, much like they were in 2012. Recently Mintz Levin’s Mitch Danzig spoke about social media, independent contractors, and the law with George Chamberlin, executive editor of the Daily Transcript in San Diego, CA. The video of their conversation also recaps the Daily Transcript’s Employment Law Roundtable.
California's New Job Killer Act - The Independent Contractor Classification Just Got More Serious for California Employers
Classifying workers as independent contractors in California- already a difficult minefield to navigate for employers– is about to get a bit harder, more convoluted and, unfortunately, more expensive.
Under existing California law, a worker is presumed to be an employee, rather than an independent contractor. The distinction is important because an employee is entitled to certain legal protections, and his or her wages are subject to various employment taxes and withholdings.
At a signing ceremony held this morning at the offices of the Department of Labor in Washington, D.C., the DOL and the IRS signed a memorandum of understanding that will likely result in increased DOL and IRS enforcement proceedings against employers accused of misclassifying employees as independent contractors. Seven states also signed similar agreements, including Connecticut, Maryland, Massachusetts, Minnesota, Missouri, Utah, and Washington. Hawaii, Illinois, Montana, and New York are expected to follow shortly.
Massachusetts Supreme Judicial Court Affirms Lower Court Ruling in Favor of Employees Misclassified as Franchisees/Independent Contractors
My colleagues Ivan Blumenthal and Robert Gault just published an Alert describing a recent decision of the Massachusetts Supreme Judicial Court pertaining to a challenge to a company’s imposition of certain fees and costs on service providers it classified as franchisees/independent contractors. You can read the full alert here.