President Obama recently announced his intention to pursue a number of policy goals via executive agencies, included among them the National Labor Relations Board (the NLRB). Whether you agree with the changes or not, it’s vital that you are aware of what might affect you and that your business comply with modifications to existing federal regulations.
One ruling that may have wide-ranging impact concerns the difference between an employee and an independent contractor. The NLRB determined in a case brought forward about FedEx Home Delivery that the previous understanding of a worker’s right to “entrepreneurial opportunity” did not suffice to classify the worker as an independent contractor–active exercise of the entrepreneurial right is required to fully meet the standard.
As such, the NLRB reclassified all FedEx delivery drivers in the company’s Connecticut terminal as employees, contrary to the company’s claim.
(NEW) Whether the evidence tends to show that the individual is, in fact, rendering services as an independent business.
The financial penalties for the misclassification of workers can be exceptionally burdensome–fines, interest, and penalties are not uncommon. Moreover, a willful misclassification will incur all the harsher penalties.
To learn more about good legal employment practices, call us today at 612-206-3701 or reach out via our online contact form to schedule your comprehensive LIFT™ (legal, insurance, financial and tax) Foundation Audit.