U.S. Department of Labor Seminar, Worker Misclassification - Top 10 Takeaways

Thank you to everyone who joined us for the “U.S. Department of Labor’s Initiatives on Worker Misclassification and the Gig Economy” seminar on March 31.  The following are the “Top 10 Takeaways” from the speakers’ presentation.  If you missed this seminar, please click here to access the presentation slides.  If you are interested in joining our next complimentary seminar, please send your request to lquinn@winstead.com  

1. While the different agencies use similar terminology, each has its own focus and its own tests and definitions; be careful when responding to inquiries.
2. Many states (including Texas) are sharing information with the U.S. Department of Labor, and DoL is sharing it with the IRS; be careful how you respond and consider how the answer reads under the various standards.
3. There can be significant financial consequences to a company if an individual is reclassified as an employee.
4. Review all independent contractor agreements re language and ACA compliance.
5. Review all outsourcing agreements re language and ACA compliance.
6. Establish company procedures regarding contracting for services from independent contractors and staffing firms.
7. Establish company procedures regarding rehiring retired workers.
8. Be sure to answer the inquiring agency using the standards used by that agency, and recognizing that the DoL has agreed to share your information with the IRS.
9. Review your employee benefit plans to verify they contain language regarding who is eligible to participate that includes addressing individuals who are reclassified.
10. When outsourcing areas, be careful not only of the labor and employment implications but also the Employer Shared Responsibility Tax language you need to protect the company.