Employers Face Crackdown On Misclassification

Law360, New York (August 13, 2009, 7:28 PM EDT) -- Employers looking to save money and avoid layoffs by classifying workers as independent contractors are facing heightened scrutiny by federal and state work force agencies, whose own coffers are shrinking with the rise of the U.S. jobless rate and the consequent decline in payroll taxes.

The use of independent contractors by small businesses reached a record high in 2009, according to the SurePayroll Contractor Index in March, which attributed the trend to the bleak economy and the decline in bargaining power by desperate job hunters....
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