More on Employee/1099 Misclassifications – The New “Right to Know” Proposal
As part of our watch on the governments crack down on employee misclassifications and the impact on the 1099 workforce, we thought our readers might be interested in the latest efforts of the Department of Labor to expand its attack on all forms of employee misclassifications that impact a workers access to taxable levels of pay and benefits.
The DOL’s Wage and Hour Division has proposed to conduct a survey to collect information from employees on 1) whether they are classified as an employee, independent contractor, or some other status, and 2) whether or not they understand the implications of their classification status on access to certain pay or benefits.
The survey is being tagged as a first step in the larger “Right to Know” initiative, which they consider a way to “foster more openness and transparency in demonstrating an employer’s compliance” with certain recordkeeping requirements associated with the Fair Labor Standards Act.
When fully implemented, “Right to Know” regulations would require HR professionals to disclose to their workers how they determined their classification and how their pay and access to benefits will be calculated.
The Society for Human Resource Management (SHRM) has been asked to comment on the survey proposal and will question the necessity for the survey, its format, and its use.
For more information on the DOL Misclassification Initiative you can visit their official website at www.dol.gov/whd/workers/misclassification.
For information about the impact of a 1099 misclassifications and how to avoid the hidden liabilities of misclassifications in general, contact our email@example.com.