We have been following this story for a few months, and we wanted to provide you with an update.

The U.S. Department of Labor has become very aggressive in identifying businesses that misclassify employees to get around labor laws. The most recent case involved Consolidated Couriers, a California based company. The judgement of $5 million dollars was for misclassifying over 500 drivers as independent contractors.

How To Make Sure Your Employees Are Correctly Classified?

If you employ any contractors, you should follow these guidelines listed below. If you find that contractors should be classified as employees, you may want to modify the way you compensate them, offer benefits, and include them in your insurance program.

These Factors Should Be Reviewed Based On Your Situation

• Is the work an integral part of the employer’s business?
• Does the worker’s managerial skill affect the worker’s opportunity for profit or loss?
• How does the worker’s relative investment compare to the employer’s investment?
• Does the work performed require special skill and initiative?
• Is the relationship between the worker and the employer permanent or indefinite?
• What is the nature and degree of the employer’s control?

To see the complete list of rules click HERE

Tags: Risk Management

This entry was posted on October 28, 2015 at 4:46 am. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

Posted in Church Insurance Church Risk by Scott Stuart Comments Off on The U.S. Department of Labor Is Cracking Down On Employee Misclassification