Calling An Employee By Any Other Name Has Consequences

Law360, New York (September 24, 2013, 12:55 PM ET) -- There has been a recent and growing trend of employers misclassifying employees as “independent contractors,” particularly in the construction industry. Contractors historically have relied on armies of skilled subcontractors to supplement their core work forces, often project by project.

Independent contractors are preferred for the monetary benefits they confer on employers, in the form of eliminated payroll and social security taxes, workers’ compensation and unemployment insurance, and minimized wage, overtime and union restrictions. But sometimes, these “independent contractors” are not “independent” in the eyes of federal...
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