New York Contractor Legislation

The Employee Misclassification Prevention act of 2008 will make it more difficult for employers to improperly classify their employees as Independent Contractors. Looking for labor cost reductions or trying to avoid expensive staffing company mark-ups? Whatever the reason, you do not want to be caught hiring a regular employee on as an IC. While trying to cut your payroll costs, this money saving technique may just turn out to be a very costly move for your company.

According to the New York Law Journal, in an informative and well written article last week, the stakes are higher than ever and the shell game has ended.  This noteworthy article provides a year in review of the topic and references several important events surrounding the issue.

The new act is strongly supported by the teamsters  (roughly 1.4 million of them) and is sponsored by Democratic Reps. Rob Andrews of New Jersey, Lynn Woolsey of California, Mike Michaud of Maine and George Miller of California