Protecting Employers Since 1985
On January 10, 2024, the US Department of Labor (DOL) published the Final Rule (standards) for assessing whether a worker is an independent contract or employee in the Federal Register. The Final Rule is scheduled to take effect on March 11, 2024 The Final Rule is a six factor Economic Reality Test: The above factors…
Read MoreIn a decision issued in mid-June, the pro-union NLRB made it tougher for employers to demonstrate that their workers are independent contractors. Independent contractors are not covered by the National Labor Relations Act and thus do not have organizing rights. The decision is The Atlanta Opera, Inc. and the Board went back to the traditional…
Read MoreThe independent contractor “legal world” is quickly transforming in many ways! It is hard to keep up with the flood of new laws and court cases impacting independent contractor status on both the Federal and State levels. FEDERAL COVID-19 LEGISLATION AFFECTING INDEPENDENT CONTRACTORS: Recently Congress passed two major bills (signed into law by President Trump)…
Read MoreMany clients are convinced that it is “hopeless” to protest the often disappointing results of an Illinois Department of Employment Security (IDES) audit and then win at a Hearing before an IDES Hearing Officer. It is true that IDES Hearing Officers (called Administrative Law Judges) are employees of the IDES. Therefore, clients often believe that…
Read MoreThe IRS SS-8 Program allows either a Company or a Worker to request that the IRS evaluate and determine whether the Worker is an employee or an independent contractor for Federal/IRS Purposes. The resulting Determination by the IRS SS-8 Unit is just the SS-8 Unit’s “opinion” (not an actual audit!). Either party can start the…
Read MoreIn July 2019, a state appeals court, the Pennsylvania Commonwealth Court (hereinafter “Court”), decided that psychological counselors (who provided services to clients) had been properly classified as independent contractors. [The case is Pathways Counseling Services LLC v. Commonwealth of Pennsylvania et al., Case Number 1332 CD 2018.] Pathways Counseling Services LLC (hereinafter “Company”) referred clients…
Read MoreUnder the Illinois Unemployment Insurance Act (hereinafter “Act”), there are certain kinds of workers (for example, real estate appraisers, direct sellers, certain kinds of newspaper delivery people) who are exempt from employment (i.e., independent contractors) as long as the specific legal requirements are met. If your company uses any of these types of workers, it…
Read MoreIf an individual is found to be an independent contractor under Title VII of the Civil Rights Act of 1964, that individual cannot sue for discrimination under that law because they are not an employee. Only employees can claim legal protection under Title VII. A surgeon recently discovered this legal reality when she sued the…
Read MoreOver the many years in which I have represented Illinois companies before the Illinois Department of Employment Security (IDES), I have seen the activity level of the IDES ebb and flow. In some years, the IDES is very energetic and active, sending out its army of IDES auditors to audit Illinois businesses (making sure these…
Read MoreThe IRS uses a Questionnaire called the IRS Form SS-8 (Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding) to determine when a particular “worker” is an independent contractor and when the “worker” is an employee. This Questionnaire has been used by the IRS for decades. One of the key…
Read MoreCOVID-19 Resources
Stay up-to-date about developments in the Midwest.
Schedule your confidential consultation
Contact Wessels Sherman if you would like to speak with one of our experienced labor and workplace attorneys, contact any of our four office locations and schedule a consultation.