Editor’s note: This is the second in a two-part series.
In our first article, we discussed the growing trend of the misclassification of employees as independent contractors. The U.S. Department of Labor has recognized this trend as one of the most serious problems facing affected workers, employers and the entire economy. The Department of Labor points out—on its website—that the employment relationship between workers and the businesses receiving the benefit of their labor has fissured apart as companies have contracted out, or otherwise shared activities to be performed by other businesses. This is accomplished through the use of subcontractors, temporary agencies, labor brokers, and franchising, licensing, and third-party management. This sharing may lead to the misclassification of employees as independent contractors in a variety of ways, such as employers simply mislabeling certain employees as independent contractors to reduce payroll course.
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