HRO Today December 2014 - 50
Contingent Labor
Getting It Right
Three strategies to reduce the risk and potential fi nes associated
with worker misclassifi cation.
By Dana Shaw
Has the worker classifi cation world gone mad? As if
economic and governmental issues weren't challenging
enough, the blame-and-shame game for companies who
misclassify workers, even unintentionally, has hit an alltime
low. Consider the most recent confl icting headlines,
HR blog posts, and messaging from state departments:
* " Supreme Court declines to hear challenge to Illinois
employment law. "
* " More fi rms will hire contractors by 2020. "
* " $10.2 million awarded to fund worker misclassifi cation
detection, enforcement activities in 19 state
unemployment insurance programs. "
* " Does Silicon Valley have a contract-worker problem? "
Then there's Pennsylvania's Construction Workplace
[50]
HRO TODAY MAGAZINE
| DECEMBER 2014
FAST FACT:
Nearly 69 percent of respondents use independent
contractors because of their unique specialist skills.
Misclassifi cation Act that outlines a summary offense
in ยง 933.5. as " An employer, or offi cer or agent of an
employer, that negligently fails to properly classify an
individual as an employee under section 4(a) commits
a summary offense and shall, upon conviction, be
sentenced to pay a fi ne of not more than $1,000.
Evidence of a prior conviction under this subsection shall
be admissible as evidence of intent under subsection (a). "
It's enough to make your head spin.
How confi dent is your organization in determining
HRO Today December 2014
Table of Contents for the Digital Edition of HRO Today December 2014
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