Protecting Employers Since 1985
The 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 More
Many 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 More
The 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 More
In 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 More
Under 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 More
If 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 More
Over 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 More
The 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 More
Many Illinois trucking companies have independent contractor agreements for owner-operators (to help establish an independent contractor relationship between the Illinois trucking company and the owner-operators who perform services as truck drivers for the trucking company). Illinois has an usual and precise legal definition of owner-operator of trucks as laid out in Section 212.1 of the…Read More
ROLE OF STATE LEGISLATURE: Surprising to many, state legislatures solely determine the legal test that is used in a particular state for evaluating whether a “worker” in question is an independent contractor or an employee (for purposes of obtaining state unemployment insurance benefits). LEGAL BATTLE OVER CLASSIFICATION: For many years, I have defended companies who…Read More
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