A recent article in HR Morning listed Utah as one of nine states that are joining forces to help crack down on companies in violation of misclassifying workers as independent contractors. Historically, state and federal agencies have withheld information from each other about leads regarding said violators. Now, employers could be facing sanctions from federal and state labor agencies, as well as tax implications from the IRS. The other eight states involved in the crack-down are Connecticut, Hawaii, Maryland, Massachusetts, Minnesota, Missouri, Montana, and Washington.
The move is the latest in a crack down on employers who classify workers as independent contractors to avoid “providing employment protections” rather than truly classifying them correctly. Employers may want to review their classification procedures to ensure compliance with state and federal law before learning the hard way.
To learn more about how to classify workers correctly, visit our article on How to Appropriately Classify Workers: Independent Contractors v Employees.
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