Senators Durbin (D-IL) and Obama (D-IL) announced in a recent Chicago Sun-Times op-ed that they have introduced the Independent Contractor Proper Classification Act of 2007 (S. 2004). Their op-ed cites a study that claims that hundreds of millions of dollars are lost in tax revenue and insurance premiums over recent years. (h/t George’s Employment Blawg.)
S. 2004 focuses on the lost tax revenue aspect of misclassifications more than other wage/hour or employee benefit aspects, like some of the other bills and cases. Still, I think this is, again, a part of a larger trend. Last time it was exempt/non-exempt misclassification which became such a growth market for lawsuits. (Frankly, that probably drove, at least in part, the increase in independent contractor misclassifications.)
If we ever get a bill with teeth, this could be the new “thing” in employment law. Given that, my cautious instincts tell me that it is time for businesses who use independent contracts in a non-business-to-business context to take a very intense look at that relationship, and re-factor their cost-benefit analysis given the increasing risk of future liability.
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I hope it go’s through cause I had an issue with a past employer that wanted to change my employment from full time to contract labor and I knew it was so he would make more money off my work with out cutting my pay.
But I and another tech turned down the offer. Two other offers where made one was a major pay cut and the last was to pay me under the table I turned both of those offers down then was told I could no longer work there.
I have been trying to find a lawyer to take my case but no one want to and I have been out of work for over 5 months now.