Challenges, Pitfalls, and Minimizing the Risks in, Misclassification of Independent Contractors: Recent Developments Impacting Global Employment
Many employers who utilize subcontractors and independent contractors are facing increased scrutiny. Companies both in the United States and overseas engaging independent contractors should evaluate independent contractor relationships and consider ways to mitigate the risks in misclassification.
The misclassification of workers classified as independent contractors continues to receive attention by federal and state agencies. Widespread use of independent contractors in the United States and overseas has led to reduction in tax collections, reduced contributions to unemployment insurance, disability and workers’ compensation funds. Independent contractors do not receive overtime compensation, do not receive unemployment benefits and workers’ compensation resulting in more federal and state Department of Labor audits. Federal and state agencies are sharing information to assist in identifying potential abuses and ensure proper worker classification.
Despite the increased scrutiny, utilizing independent contractors is permissible under existing laws and can generate significant business costs and tax savings when the relationship is established properly. Independent contractors are not eligible to participate in employee benefit plans and are paid as self-employed individuals without tax withholdings and contributions. However, the costs of misclassification can be high in terms of taxes, back wages and various penalties.
Attending this course will give you a broad overview of the Internal Revenue Code, FLSA and state statutes, generally, that apply to employee v. Independent contractor determinations. The course will give you tools and other options for your overseas workforce and to evaluate independent contractor relationships and provide an in-depth analysis of the classification tests used in different countries and the misclassification risks associated in each classification tests.
Barry A. Furman, Principal
Kaplin Stewart Meloff Reiter & Stein, P.C.
- My background and classification experience
- IRS (and state) classification issues
- IRS (and state) misclassification consequences
- Present IRS Positions including Treasury/State reciprocity
- Preventing misclassification
Anne Cherry Barnett, Principal
- Use of Independent Contractors Under the Trump Administration
- Withdrawal of DOL guidance
- NLRB enforcement
- What do employer’s do now?
- What are joint employer risks in using staffing companies and/or subcontractors and how to minimize liability?
- Necessary components of employment agreements and/or contracts with staffing agencies and/or subcontractors to minimize liability.
Roger James, Partner
- Misclassification risks – what are the classification tests used in different countries.
- Staffing companies and other options for your overseas workforce.
- Practical considerations when engaging someone overseas.
Who Should Attend:
- Business Owners
- Corporate Counsel and Tax Professionals
- Finance Executive
- HR Professionals
- Tax and Business Attorneys
Barry A. Furman is a principal of Kaplin Stewart with over 30 years’ experience representing a wide range of business clients in individual, corporate, and estates and trusts tax matters. These matters include corporate, healthcare, employment, and real estate law, as well as estate planning and administration. Prior to entering private practice, Barry served as law clerk to a United States District Court Judge and was Senior Trial Attorney with the Office of Chief Counsel IRS. Barry was awarded several merit awards by the Chief Counsel’s Office and has received accolades in private practice. Barry has vast experience advising clients on the pros and cons of engaging independent contractors and avoiding misclassification. He has successfully challenged the IRS, U.S. Department of Labor and numerous state agencies throughout the United States. He is especially fond of representing clients in tax controversies before the IRS Appeals Office and in the United States Tax Court, United States District Courts, and United States Claims Court.
Barry A. Furman is a principal of Kaplin Stewart with over 30 years’ experience representing a wide range of business …
Anne Cherry Barnett focuses her practice on employment matters and has represented clients of all sizes, including start-ups and large Fortune 50 companies. She prides herself on providing sound and cutting edge legal strategies that consistently focus on the client’s bottom line as they navigate the complex labyrinth of California and Federal employment regulations. Anne has represented employers in single plaintiff and class action litigation and her areas of focus include:
- Wage and hour violations, including class actions;
- Discrimination and wrongful termination
- California Labor Code violations
- Worker Adjustment and Retraining Notification Act
- Breach of contract
- Worker misclassification
Anne also regularly counsels employers regarding compliance with wage and hour laws, exempt and non-exempt classification, independent contractor status, founder disputes, workforce reductions, discrimination claims, workplace investigations, employment policies and risk management regarding potential litigation.
Anne Cherry Barnett focuses her practice on employment matters and has represented clients of all sizes, including start-ups and large …
Roger is a member of Ogletree’s International Practice Group, based in their London office. He has a particular niche in international issues and oversees the challenges of employing people in multiple jurisdictions for multinational clients.
Roger’s clients are across all sectors and range from global multinationals to start ups. His work covers all aspects of employment law across multiple jurisdictions including in particular:
- Executive hiring and firing
- RIFs and restructuring
- acquisition, due diligence and harmonisation
- investigations and litigation
- union and industrial action issues
Roger qualified in 1996 and joined Ogletree in May 2017 from an international firm where he had headed the Employment Team and split his time between the firm’s UK and Singapore offices. As such Roger has particular expertise dealing with labor and employment law issues in Europe and Asia.
Roger is a member of Ogletree’s International Practice Group, based in their London office. He has a particular niche in …
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Method of Presentation:
On-demand Webcast; Group-Internet Based
NASBA Field of Study:
NY Category of CLE Credit:
Areas of Professional Practice
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About Kaplin Stewart Meloff Reiter & Stein, P.C.
Kaplin Stewart is a full service business law firm with a passion for the law, where creative thinking is the norm. We combine the depth and sophistication of a large business law firm with the agility and entrepreneurial spirit of a small firm. Our attorneys have a business mentality and background that are as diverse as the clients we serve. We offer guidance in a wide range of employment laws and regulations as well as human resource issues. With offices in Blue Bell, PA, Philadelphia, PA, and Cherry Hill, NJ, we provide the business and legal savvy that our business clients need to compete and thrive. Website: http://www.kaplaw.com/.
Polsinelli is an Am Law 100 firm with approximately 800 attorneys in 20 offices. Ranked #17 for Client Service Excellence1 and #10 for best client relationships2 among 650 U.S. law firms, Polsinelli was also named among the top 20 best-known firms in the nation3. The firm’s attorneys provide value through practical legal counsel infused with business insight, and focus on health care, financial services, real estate, intellectual property, mid-market corporate, labor and employment, and business litigation. www.polsinelli.com | Polsinelli PC | In California, Polsinelli LLP
12017 BTI Client Service A-Team Report
22017 BTI Industry Power Rankings
32017 BTI Brand Elite
About Ogletree Deakins
Ogletree Deakins is one of the largest labor and employment law firms representing management in all types of employment-related legal matters, including advising clients operating worldwide and offering cross-border solutions to the key challenges of managing a global workforce. The firm has over 800 attorneys located in more than 50 offices through the Americas (including Toronto and Mexico City), and in Europe. Ogletree Deakins has been named a Law Firm of the Year six consecutive years by U.S. News – Best Lawyers® “Best Law Firms.” In 2017, the publication named Ogletree Deakins its “Law Firm of the Year” in the Labor Law - Management category. In addition to handling labor and employment law matters, the firm has thriving practices focused on business immigration, employee benefits, and workplace safety and health law. Ogletree Deakins represents a diverse range of clients, from small businesses to Fortune 50 companies.