Special Report: States Enact Legislation Having a Mixed Effect on Independent Contractors

Continuing the trend of recent years, independent-contractor status has remained a focus of state lawmakers during the first half of 2016. This continued attention has resulted in several recently enacted bills that will have a mixed effect on independent contractors and their clients. Thus far this year, generally helpful bills have been enacted that clarify the independent- contractor status of… Read more →

South Dakota Becomes the Latest State to Sign a Worker Misclassification MOU

South Dakota Becomes the Latest State to Sign a Worker Misclassification MOU

The U.S. Department of Labor, Wage and Hour Division (“WHD”) recently expanded the reach of its worker misclassification initiative by entering into a Memorandum of Understanding (“MOU”) with the South Dakota Department of Labor and Regulation, Division of Labor and Management. The MOU was signed on May 24, 2016. This is the 30th MOU that the WHD has entered into… Read more →

Recent Study Reaffirms Independent Contractors Prefer their Status

A recent study found that 77% of independent contractors are very satisfied working as independent contractors. The Direct Selling Association sponsored the study titled, The Workforce of the Future, which was conducted by Bloomberg Government. Additional key findings from the study include: The number one reason study participants chose to become independent contractors was to be their own boss. 77%… Read more →

House Small Business Committee Hearing Considers Taxes and the Sharing Economy

At a recent hearing before the U.S. House of Representatives Committee on Small Business certain Members and witnesses expressed concern that current tax laws are outdated and burdensome to companies in the “sharing economy.” The hearing, titled, “The Sharing Economy: A Taxing Experience for New Entrepreneurs, Part I” was held on May 24, 2016. Committee Chairman Steve Chabot (R-OH) observed… Read more →

Ohio Bill Would make it More Difficult to Establish an Independent-Contractor Relationship

A bill was recently introduced in the Ohio legislature which would pose an existential threat to companies that do business with independent contractors. The bill, H.B. 568, would establish a new more stringent seven-part statutory test to determine a worker’s status for purposes of several state laws. H.B. 568 would amend the minimum wage, workers’ compensation, unemployment, and tax law… Read more →