Bill Takes On Independent Contractor Classification

Law360, New York (December 16, 2009, 6:17 PM EST) -- Sen. John Kerry, D-Mass., has introduced a bill to close a tax loophole he says allows employers to misclassify workers as independent contractors rather than employees entitled to overtime pay and other benefits.

The bill, introduced Tuesday, would revamp the Internal Revenue Code to ensure that employers who classify certain workers as independent contractors have a reasonable basis for not treating them as employees.

It would revise Section 530 of the Revenue Act of 1978, the “safe harbor” provision that allows employers to designate workers as...
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