New Law Cracking Down on Independent Contractor Misclassification

Check out this great article from the Independent Contractor compliance website on legislation to combat independent contractor misclassification.

On January 10, 2014, Governor Andrew Cuomo signed into law the New York Commercial Goods Transportation Industry Fair Play Act . The new law targets transportation and delivery companies in New York that classify as independent contractors certain drivers that deliver commercial goods in the state. The law drastically changes the legal test in New York for determining if such drivers are independent contractors or employees – requiring far more effort for legitimate businesses in this industry to create and maintain independent contractor relationships in the state.  New York has been at the forefront of independent contractor misclassification initiatives in the recent past, and it is likely many other states will consider enacting similar laws for the transportation and delivery industry in 2014.

Click here to continue reading this article on the Independent Contractor Compliance website.

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8 Responses to “New Law Cracking Down on Independent Contractor Misclassification”

  1. Randolph Mason says:

    Wanted to ask a question I am a 1099 employee and I use the equipment of a person who makes u sign a contract that says if anything happens to equipment that it will be determined if it’s mechanical failure or driver neglect and in most cases he determines that it’s driver error and then without any justification will take 75 percent of your pay check is this legal please give any advice u might have

    • 10 til 2 says:

      Randolph: You should definitely contact the Department of Labor in your state ASAP to determine the legality of such a contract. It also sounds like there is a strong possibility that you might be misclassified as a contractor as well. Good luck and keep us posted!

  2. Lynn says:

    I don’t know how to handle my the situation I’m in. I am an office administrator for a real estate company. When I first came on, I was an independent contractor because my position then was a blogger and I worked from home and the office. Almost 4 months ago I was offered the position of Office Administrator. I now have set hours, only work from the office, have a job description that is provided by the company, etc. Basically the points in this article apply to me. When they offered me the job, I assumed my independent contractor status would change because I was being paid officially by the company now and because they told me we would have a meeting in the very near future of my promotion to discuss that very thing. That meeting never happened. I’ve tried to talk to them about it, but still am at a standstill until just a few days ago. On Tuesday, the three owners met with me and said they want to pay for me to get my real estate license, but not for me to sell real estate (which I don’t want to do anyway and they know that). They want me to get it so they can claim I’m an agent and not an hourly employee and 1099 me. They said they were doing me a favor because taxes won’t be taken out of my check. I know this is wrong, but I need my job. I am a single mother and I have to work. It’s now getting to a point that my responsibilities there keep increasing. Now I’m the bookkeeper and the office administrator and receptionist. They make sure my hours don’t exceed 35 a week so they don’t have to offer me and paid time off whether that be sick days or vacation….etc. I could go on and on, but I know this is way too long as it is. I know I’m getting taking advantage of, but I’m scared to say anything and lose my job, but at the same time, I know if I don’t do anything I will be worse off in the long run. Any advice would me much appreciated. Thank you

    • 10 til 2 says:

      Lynn: First off, let’s make this clear: we are not lawyers, so we strongly suggest you contact one or the Department of Labor in your state for professional advice on this matter. That being said, it sounds like your employers are not being forthcoming with you. While they are correct that your checks as an independent contractor will not have taxes withheld, what they are not telling you is that they are essentially trying to relieve themselves of their obligated portion of your tax burden. They are not alone; many employers try to misclassify employees and it saves them a bundle; sometimes it is out of ignorance and sometimes not. Since they are savvy enough to request you get a real estate license, it sounds like they know exactly what they are doing. Being a single mom is hard; and even harder when you feel that you are being taken advantage of. You probably know the answer to your question; but again we strongly suggest you contact the Department of Labor to try to determine your best options. Best of luck to you and please keep us posted.

  3. rebecca says:

    I am a cna working for an agency in private clients homes. We have very strict rules (in effect after 3 yrs… ) Yet we are 1099 employees. I don’t mind the rules…we follow the rules set forth by the clients we work for. The agency tells us where to go, what time to be there, etc. Now, however, they are insisting on everything from how to wear our hair, to the length of fingernails, and who we can let into private homes ( family only…what do I tell their guests?). I believe I am completely misclassified as a 1099, as I seem to fit the W2 status outlined by the IRS. WHAT DO I DO?

  4. Terri Rollins says:

    In April 2014, I was hired as a W-2 employee and would submit my actual hours worked on my timesheet each day. I performed the job of more than 1 person and it took more than 8 hours a day to do. My boss made me change my hours each day to put 8 hours on my timesheet. On June 13th, they said it wasn’t working and released me but did not pay me for the last week of work I did (a total of 56 hours). I worked as a Proposal Manager and Business Development Analyst. My salary was $4,038.47 bi-weekly. What type of restitution should be made? And was I misclassified as a W-2 employee when I should have been a 1099?

    Thank you for considering this question.

    • 10 til 2 says:

      Terri: Nothing you mentioned screams 1099; but we strongly urge you to contact an employment attorney (which we are not) or the Department of Labor in your state to determine if you have a cause of action to recoup the money you say is owed to you. Best of luck to you.

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