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Important Update: 1099 Classification

As a follow-up to our blog from last month (1099 Employees: Are They Legal?) we wanted to share a very important update. The Department of Labor (DOL) is now increasing their investigation efforts on misclassification of independent contractors. For this new initiative, 19 states are receiving funds from the federal government for state enforcement efforts. Four states (Utah, Maryland, New Jersey, Texas) are receiving an additional "high performance bonus" to further increase state efforts.

"To all those using independent contractors: The Department of Labor (DOL) is no longer looking to just strengthen its own enforcement of employee classification rules, it’s now strengthening states’ enforcement efforts as well. That means expect even more audits of employer relationships with independent contractors. Should employers be worried about this grant funding? You betcha." Continue reading Christian Schappel's article on HRMorning.com to see a complete list of states expected to receive funds.

If you have any questions about legally classifying the people who work for you, contact us for help.
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