Legislation Introduced To Prevent Misclassification of Workers As Independent Contractors
Under the Fair Labor Standards Act, independent contractors are not entitled to benefits such as minimum wages, overtime, worker’s compensation and unemployment insurance. State and federal anti-discrimination laws often do not protect them.
As a result, being classified as an independent contractor or as an employee can have significant legal and financial implications. Many employers either mistakenly or intentionally misclassify employees as independent contractors or non-employees in order to avoid paying adequate wages and overtime.
In an attempt to rectify this problem, lawmakers have recently introduced the “Employee Misclassification Prevention Act” aimed at reducing misclassification errors.
The Act includes the following provisions:
• Employers must keep accurate records of each workers’ status and clarifying that it’s a violation of the FLSA to misclassify workers;
• Increased fines for misclassification;
• Workers must be notified of their classification;
• Creation of an “employee’s rights website” containing relevant information concerning state and federal wage and hour issues;
• Workers who are discriminated/retaliated against for requesting proper classification will be protected;
• Mandating state audits of classifications along with DOL oversight; and
• Directing DOL to audit employers in industries with routinely misclassified employees.
As Georgia employment lawyers, we will be following this legislation closely. Too often employees are denied fair compensation, including overtime and benefits as the result of a misclassification. If you have any questions or believe that you have been denied fair compensation or benefits, please contact Buckley & Klein, LLP, a Georgia employment law firm dedicated to protecting employee’s rights.
