Company must supply workers with independent contractor fact sheet

Plus, $38,000 in back wages must be paid to misclassified workers

The Dept. of Labor (DOL) wants to be sure employers are correctly classifying employees and independent contractors (IC).

It’s the latest strategy to boost compliance: explaining the difference to workers themselves.

That’s what happened when the DOL inspected H&H Lawn Service and Snowplowing LLC, in Muskegon, MI, Investigators discovered some employees were misclassified as independent contractors—and lost out on overtime as a result.

In addition to requiring $38,000 in back wages, the DOL took things a step further. It said H&H would have to supply its workers with a fact sheet outlining the definition of an employee vs. an independent contractor.

H&H also has to notify employees in writing if it’s claiming an exemption from overtime for them—and why.

Double-check classifications

Companies often mistakenly think their employees are ICs and employees are classified correctly.

Remember to consider:

Whether your company controls what the worker does and how

Who supplies any tools used

If there are written contracts explaining the role, and

Who determines when and how the worker is paid.

Cite: tinyurl.com/contractors510