Retirees a.k.a Double Dippers

With the talent crunch in full swing many employers including the state and federal government are taking on retirees to help ease the work load while they continue to search for full time employees. The issue at hand is not retirees reentering the workforce but former employees returning to work to perform the exact same job they had prior to exiting the workforce. States are cracking down on a practice termed "double dipping" where workers collect pension benefits in addition to them earning a salary with a current employer/former employer. It is estimated thousands of state and local workers retire, collect pension benefits and then keep working, more often doing the same job they retired from!  Although perfectly legal in every state some think it's not fair and want something done about it.

While rehiring retirees may seem to be a great way to tap into an experienced labor pool it may just cost you more in the long run. Time, effort and higher compensation are just part of the overall costs of engaging former workers. When you factor in a staffing agency mark up or take another route and contract directly with the worker the costs jump up significantly.  On top of the direct labor costs navigating the independent contractor landmines laden with heavy fines and penalties for misclassified worker can be financially devastating to a company.

Employment practices of this nature are often labeled tax schemes and front and center on the legal stage at all times with no real end in site.  State Agencies are leading the charge in the war on independent contractors and employers who use them. The returning retiree more often than not falls into the misclassified independent contractor category. When you combine two very unpopular employers labor practices the bright line leading the auditors straight to your door gets even brighter. You may want to rethink who and how you staff your next job opening

Bottom line the real issues are tax dollars, desperation and nothing more. This bold move by the states to curb retiree usage especially independent contractors in the government sectors through legislation is another clear indication they intend to win this war. Talk about double dipping...