Shelby Daly MS ATC CSCS’ Post

Is the current regime renewing the government’s war on independent contractors and freelancers? Proposed new labor rules will make it more difficult for companies to utilize (and pay people as) independent contractors. This will absolutely push up labor costs (and quite possibly reignite inflation). With 40% of US workers working as independent contractors, this move could also have a dramatic impact on employment. Given the existing weaknesses and toxicities in US labor markets, a government action which potentially reduces employment hardly seems like sound policy. https://lnkd.in/gQFpzBbM

The proper classification of employees remains huge priority, with many evolving considerations. If approved by the courts, a recent agreement between Qwick, (a hospitality staffing company) and S.F. will be the first in the state of CA requiring a major company to treat large numbers of workers as employees rather than independent contractors. Qwick has agreed to reclassify its workers as employees and pay $1.85 million in compensation in the settlement with the city of S.F. “We’re excited to announce that our California markets will be the first to experience our enhanced, compliance-focused… model,” Dana Barbeau, Qwick’s chief people officer, said in a statement. “The future of work is evolving, and our goal is to lead that evolution by providing innovative opportunities that empower our freelancers.” See https://lnkd.in/ehvCumjC for more info. The suit said the company was violating a 2019 California law, AB5, that classifies workers as employees if their work duties are controlled by the company that hired them, or the company they work for. Remember when Uber and Lyft sponsored a November 2020 ballot measure, Proposition 22, that exempted them from AB5 and classified their drivers as contractors? It was approved by 59% of the state’s voters, but the state Supreme Court has granted a request by labor unions to decide if the measure violates the CA constitution. However, Prop 22 did not cover the workers at issue in the Qwick suit. If you have questions today about the classification of your staff, give us a call us at 415-890-6057 or email us at info@fairgrievelaw.com

Beginning with 2024 filings (i.e., tax year 2023), businesses that file 10 or more returns will need to file those returns (including Forms 1099-NEC) electronically. This means if you have 8 W2 employees and 2 1099s, you or your CPA will have to file them electronically. Previously, only organizations filing more than 250 information returns in a calendar year had to file their returns electronically. However, new Internal Revenue Service (IRS) regulations issued in February 2023 drastically expanded that mandate. Additionally, filers will also be required to aggregate almost all return types covered by the regulation (e.g., 1099s, W2s, etc.) to determine whether a filer meets the 10-return threshold. WorkMarket by ADP is an independent contractor management system that helps organizations efficiently and compliantly onboard, verify, pay, and manage their workers. As the rules and regulations around engaging with independent contractors (1099 workers, freelancers) shift and evolve, we can help mitigate risk. 💥 Send me a message if you are looking for a solution around managing your contractors (1099s).

News alert! 🚨 The new final rule on independent contractors will take effect in March. Small business owners: When engaging independent contractors, be sure you’re mindful of the latest final rule issued by the Department of Labor on how to legally differentiate these workers from actual employees. We've got the details for you below: https://bit.ly/3uIKtwS #smallbusinessowner #employer #newrule #DOL

Revenue has issued new guidance on employment status. If you need help in determining employment status and that you are compliant, please contact the team at HR Buddy. info@hrbuddy.ie 064 6698034 The decision-making framework consists of five questions as follows: “1. Does the contract involve the exchange of wage or other remuneration for work?”. This is more commonly known as the ‘Work/Wage bargain’ “2. If so, is the agreement one pursuant to which the worker is agreeing to provide their own services, and not those of a third party, to the employer?”. This is more commonly known as ‘Personal Service’ “3. If so, does the employer exercise sufficient control over the putative employee to render the agreement one that is capable of being an employment agreement?”. “4. If these three requirements are met, the decision maker must then determine whether the terms of the contract between the employer and worker interpreted in the light of the admissible factual matrix, and having regard to the working arrangements between the parties as disclosed by the evidence, are consistent with a contract of employment, or with some other form of contract having regard, in particular, to whether the arrangements point to the putative employee working for themselves or for the putative employer.”. “5. Finally, it should be determined whether there is anything in the particular legislative regime under consideration that require the court to adjust or supplement any of the foregoing.” https://lnkd.in/eeYMJHCv ##hrconsultancy ##hrsolutions

Revenue has issued new guidance on employment status. If you need help in determining employment status and that you are compliant, please contact the team at HR Buddy. info@hrbuddy.ie 064 6698034 The decision-making framework consists of five questions as follows: “1. Does the contract involve the exchange of wage or other remuneration for work?”. This is more commonly known as the ‘Work/Wage bargain’ “2. If so, is the agreement one pursuant to which the worker is agreeing to provide their own services, and not those of a third party, to the employer?”. This is more commonly known as ‘Personal Service’ “3. If so, does the employer exercise sufficient control over the putative employee to render the agreement one that is capable of being an employment agreement?”. “4. If these three requirements are met, the decision maker must then determine whether the terms of the contract between the employer and worker interpreted in the light of the admissible factual matrix, and having regard to the working arrangements between the parties as disclosed by the evidence, are consistent with a contract of employment, or with some other form of contract having regard, in particular, to whether the arrangements point to the putative employee working for themselves or for the putative employer.”. “5. Finally, it should be determined whether there is anything in the particular legislative regime under consideration that require the court to adjust or supplement any of the foregoing.” https://lnkd.in/eHPjfpj3 ##hrconsultancy ##hrsolutions

Starting March 11, 2024, there's a big change in how workers are classified as employees or independent contractors under the FLSA. Our latest blog post breaks down the six-factor test and what it means for you. Perfect read for employers and freelancers alike!

I write concerning the application of guaranteed hours after 12 weeks to agency workers. I appreciate that the government is concerned that, if agency workers are not included in the legislation, then the use of recruitment agencies will escalate and be seen as a way of circumventing the regulations. However, the unintended consequences of what is currently proposed would be devastating. I have worked in the recruitment industry for nearly 40 years. It is an industry with an unlimited capacity for circumventing regulations and the current proposals would be vulnerable in the extreme to manipulation. As a precedent, I will reference the Swedish derogation. This was brought in as an opt out to the equal pay element of the Agency Workers Regulations. The idea was that workers could opt out of equal pay with a permanent comparator after 12 weeks but instead be paid when between assignments (at a specified rate). The larger agencies in particular developed sophisticated systems to ensure that workers were never “between assignments”. I attended a meeting with Chukka Umunna at the House of Commons, where instances of the methods used to circumnavigate the regulations were provided by workers from a large factory in Liverpool. They would be texted by their agency at any hour of day or night, including weekends, with the offer of work, often being required to attend within an hour. (Even when they responded immediately, the workers said they were told the work had already been taken). When they failed to respond, they were deemed to have broken their contracts, which included clauses stating that workers must be available at all times and in all locations in the UK. As a result, they made themselves ineligible for payment between assignments. Other workers gave examples of how they were offered work for just a few hours at locations where the fares would have exceeded the wages. Again, turning down such offers was seen to be a breach of contract. The Swedish derogation was eventually outlawed, but not before the practices outlined above were baked into almost every agency in the unskilled sector. Hundreds of thousands of workers suffered permanent detriment and the equal pay element of the regulations ceased to apply to these workers. Furthermore, agencies that wished to abide by the spirit of the regulations were unable to compete commercially, as my own agency found many times.

BREAKING NEWS! A final rule on classifying independent contractors has been issued by the Department of Labor. Get the insight you need on the latest regulations and what they mean for your organization. WorldatWork has the details. https://bit.ly/3vldOgP #BusinessCompliance #ContractorGuidelines #Compensation

Two (2) months for your organization to review the classifications of independent contractors, the new rule takes effect Monday, March 11, 2024. Please let me know if I can provide adjunct services for reviewing your organization's classifications.