Bellas & Wachowski

New Guidance From the Department of Labor May Affect Your Independent Contractor Classifications

The US Department of Labor recently issued new guidelines to help clarify the long standing confusion around the question:  When is a person properly classified as an Independent Contractor and when are they an Employee? Throughout the years, there have been a number of overlapping and sometimes conflicting standards used by various government agencies, the IRS, the Illinois Department of Employment Security, the Department of Labor, state and federal courts etc.  Hoping to clear up some of the uncertainty, the DOJ has issued an analysis explaining how the distinction should be made.

The DOL evaluation boils down to a set of six factors, each of which is supposed to carrying equal weight. When considered together, these factors should reflect the economic reality of the situation. Based on the DOL's position, an overwhelming majority of individuals would be classified as "Employees" rather than Independent Contractors.

The factors used by the DOL include: (a) the extent to which the work performed is an integral part of the employer's business; (b) the worker's opportunity for profit or loss depending on his or her managerial skill; (c) the relative investments of the employer and the worker; (d) whether the work performed requires special skills and initiative; (e) the permanency of the relationship; and (f) the degree of control exercised or retained by the employer. Each of these factors is to be assessed in the context of the greater question when determining whether a worker is economically dependent on the employer. If that is the case, they should most likely be considered an employee.

Classification of an individual as either an employee or an Independent Contractor can have a dramatic impact on both businesses and individuals. Furthermore, the U.S. Department of Labor, as well as the Illinois Department of Labor are extremely active in enforcing "misclassification" actions. Employers must take note of this development and examine all working arrangements so as not to be caught misclassifying individuals. 

In response to these recent developments, Bellas & Wachowski has created a new web page explaining the new Independent Contractor vs Employee clarification factors in detail.
  
Bellas & Wachowski is a client-oriented firm, giving each client close attention and service. We want to get to know you so that we can fight for exactly what you need. Our attorneys are available to clients and always respond quickly to calls. Please contact us today with any questions you have about employment law at www.bellas-wachowski.com or call William P. Boznos (847) 823-9030 x212.
Attorneys Who Care About Their Clients

 

At Bellas & Wachowski our focus is always on achieving the best results for our clients. We have developed many innovative methods to provide our clients with added protection. For example, in our personal injury work, we take a unique Total Guard Approach that ensures clients' finances will be protected during litigation. And in our business law section, we offer a Corporate Maintenance Plan that helps maintain a business's corporate standing.

 

Sincerely,

 

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Bellas & Wachowski
15 North Northwest Highway
1-800-825-9260
Our Attorneys
George S. Bellas
Peter C. Wachowski
William Peter Boznos
 Misty J. Cygan
Vicki Hathaway Gonzalez
Patrick Andes

B & W News

George Bellas has once again been recognized by Thomas Reuters as an Illinois Super Lawyer in the field of Business Litigation. This marks the 11th consecutive year this distinction has been bestowed upon Mr. Bellas, who has gained a national reputation for his expertise in complex litigation cases. The exclusive honor is limited to only 5% of Illinois lawyers.

 

Misty Cygan, who is an Air Force Veteran, has been certified by the Veterans' Administration to represent Veterans.  


Check out George's Biz Blog.