April 2012

In recent weeks, identical bills were proposed in the House (H.R. 4123) and Senate (S. 2145) to eliminate the so-called “safe harbor” in the federal tax code that protects businesses that have misclassified employees as independent contractors and, thus, have avoided paying payroll taxes, unemployment insurance, workers’ compensation premiums and other costs. These bills mark the second time in 18 months that such legislation has been put forward. Though unlikely to pass, especially in this gridlocked Congress, the bills are just the latest in a number of recent endeavors by state and federal lawmakers and law enforcement agencies to curb independent contractor misclassification.

While the bills recognize that many workers are properly classified as independent contractors, the U.S. Department of Labor estimates that as many as 30% of employers are misclassifying employees as independent contractors. According to the IRS, approximately $54 billion in tax revenues are lost annually because of independent contractor misclassification. These agencies are now taking action to police misclassification and curb abuse.
Continue Reading Independent Contractor Misclassification in the Crosshairs

On April 17, 2012, in response to an emergency motion, the Court of Appeals for the D.C. Circuit issued an injunction blocking the National Labor Relations Board from implementing its notice posting rule, which was set to go into effect at the end of the month. The D.C. Circuit’s order follows on the heels of a South Carolina opinion striking the posting rule as beyond the scope of the Board’s authority.

As a result of the court’s injunction, employers are relieved from having to comply with the notice posting rule until the conclusion of the appeal. While the appeal is on an expedited schedule, a decision is not expected until September 2012 at the earliest.
Continue Reading NLRB Notice Posting Saga Continues: Federal Court Blocks Board’s Rule

Thanks to recent headlines about the increase in employers demanding social media passwords of employees and job applicants, employers have gotten a quick lesson on the increased the risks of this practice, especially if the employer neglects to have the proper policies and procedures in place.
Continue Reading Is there a way to safely use social media in the interview process?

There has been a lot of backlash against the practice of employers asking potential employees for their Facebook password. So much so that U.S. senators are calling on the EEOC and the U.S. Department of Justice to launch an investigation to determine whether this practice is lawful. Facebook is also weighing in and threatening legal action against employers who engage in this practice.

In this blog post I provide a brief video update on the Facebook story and describe best practice alternatives to relying on social media in employee hiring.
Continue Reading How to screen job applicants without asking for the Facebook password