Democrats Might Rewrite Contractor Law
November 25, 2008
Last fall, President-elect Obama introduced a bill to crack down on companies' ability to classify workers as independent contractors rather than employees. The bill, described here, would remove an exemption for firms that designate workers as independent contractors based on long-standing practice in their industries. The bill would affect the transportation, construction, and financial services industries, among others. Sponsors of the bill state that it seeks to correct worker misclassification, which they estimate may result in $4.7 billion in lost federal revenue each year. However, the bill would also affect the classification of millions of employees across the country in a variety of industries. Employers must be prepared to audit their classification policies should this legislation become law.
http://www.govexec.com/dailyfed/1108/112008cdam1.htm