📅February 5, 2025, 12 – 1 p.m. ET Join us for a timely webinar where we will highlight some of the key issues employers are facing in light of the recent executive orders signed by President Trump. The orders impacting employers include an order ending certain federal contractor affirmative action requirements and terminating federal DEI … Continue Reading
On October 11, 2022, the Wage and Hour Division of the U.S. Department of Labor (DOL) issued a Notice of Proposed Rulemaking that would make it more difficult for employers to properly classify workers as independent contractors under the federal Fair Labor Standards Act (FLSA).… Continue Reading
On December 1, we discussed a decision issued by the Eastern District of Kentucky enjoining implementation of President Biden’s Executive Order 14042 in Kentucky, Ohio, and Tennessee, querying whether similar challenges would likewise result in injunctive relief. As we portended, on December 7, a federal judge in the Southern District of Georgia issued a broader … Continue Reading
On February 19, 2021, the US Department of Labor’s (“DOL”) Wage and Hour Division (“WHD”) withdrew two Trump-era opinion letters. The first, FLSA2019-6, discussed whether a service provider for a virtual marketplace company (“VMC”) is an independent contractor or an employee subject to the Fair Labor Standards Act (“FLSA”). The second, FLSA2019-10, involved the compensability … Continue Reading
The range of employers who may be liable for the misclassification of workers just got bigger. On January 14, 2021, the California Supreme Court decided that the decision in Dynamex Operations West, Inc. v. Superior Court (2018) 4 Cal.5th 903 (Dynamex) applies retroactively to all non-final cases that predate the April 2018 Dynamex decision. Dynamex … Continue Reading
On September 22, 2020, the US Department of Labor (DOL) issued proposed regulations aimed at codifying the classification of independent contractors under federal wage and hour law. If adopted—and the DOL has indicated it plans to fast-track the rulemaking process in order to issue final regulations by January 2021—the rule change would significantly relax the … Continue Reading
Trying to find the most depressing part of the new House of Lords’ Economic Affairs Committee report on IR35 is not easy. There are so many possible candidates, for one thing, and as an insight into the legislative process it is little short of terrifying. Not even law by twitter like the Job Retention Scheme, … Continue Reading
Ready for IR35 in three months’ time? Nor is almost anyone else, it seems. But is it now too late to do anything about it, or can you still take meaningful steps, even at this advanced stage, to protect your IR35 position?… Continue Reading
January 10, 2020 Update to AB 5 Challenges Trucking Industry: On Wednesday, January 8, 2020, a California state court ruled that AB 5 does not apply to the trucking industry because the state statute is preempted by federal law. This state court ruling lays a solid foundation for the federal court hearing on the trucking industry’s … Continue Reading
Between August 29 and September 10, the National Labor Relations Board (“NLRB” or “Board”) issued four decisions that resolve important issues that have been the subject of long-running disputes. It also issued an invitation to submit briefs in a case that provides an opportunity for the current Board majority members to revise the standard for … Continue Reading
AB 5, and its “ABC test,” expected to have greatest impact in “gig economy” jobs, but impact certain to be even more widely felt After a summer of lobbying and debating, the California Assembly adopted AB 5, a headline-grabbing law purporting to transform the status of gig-economy workers at companies like Uber, Lyft, and DoorDash. … Continue Reading
Last month the government published both the results of its latest consultation on IR35 and the draft legislation. So with time to digest, any surprises?… Continue Reading
In a recently-released Advice Memorandum dated April 16, 2019, the National Labor Relations Board’s (“NLRB”) Office of the General Counsel (“GC”) determined that drivers utilizing Uber Technologies’ smartphone application-based rideshare platform are independent contractors, not employees, under the National Labor Relations Act (“NLRA”). In arriving at this conclusion, the GC utilized the independent contractor test … Continue Reading
On Monday, April 29, 2019, the United States Department of Labor (“DOL”) Wage and Hour Division issued an opinion letter in response to an inquiry from an anonymous “virtual marketplace company” (“VMC”) concerning whether individuals who provide services through the VMC (“service providers”) are employees or are independent contractors for purposes of federal wage and … Continue Reading
Come April 2020, if you want to avoid having to deduct tax on invoices from J Soap & Co for the supply of Joe Soap, you will need to confident that it is in business on its own account and not just a vehicle for our Joe to minimise his income tax bill. Key to … Continue Reading
When considering whether an individual would be an end-user’s employee for IR35 purposes if you took away his personal services company, HMRC will pay particular attention to how far his role can be said to be integrated into the business of that end-user. Some peripheral involvement is absolutely fine, but the greater the degree of … Continue Reading
In an earlier part of this series I floated the question of whether you could safely omit from a contract with a personal services company some of the “quality control” wording you might see in an employment contract. After all, runs the argument, that sort of obligation must amount to control or direction, and then … Continue Reading
From April 2020, IR35 will make end-user businesses liable to deduct income tax and National Insurance on payments to personal service contractor companies where, if you took away the company, the individual whose services are supplied would be their employee. A key factor in that question is the obligation of personal service on the individual … Continue Reading
If you appointed a decorator to paint your house, would you expect him to need to borrow your brushes? A window cleaner not to have his own ladders? A tax consultant to ask you to supply a calculator? Obviously (or at least hopefully) not.… Continue Reading
We said in Part 1 of this series that the application of “new” IR35 to make private sector end-users liable to deduct tax on contractor payments would depend in part upon the tasks your contractor is hired to undertake. In particular, are they at heart employee-type responsibilities?… Continue Reading
So you have identified your individual contractor and you want to agree terms of engagement with his personal services company which give you the best possible chance of avoiding direct liability under IR35 when it changes in 2020. Here are some preliminary tips:… Continue Reading
The proposed extension of IR35 in April 2020 will make private sector businesses liable to deduct tax on payments to individual contractors operating through personal service companies if the individual would be deemed their employee if it were not for the PSC.… Continue Reading
Why are we starting to talk now about a change in tax laws which won’t apply until April 2020? Because what you do now can materially alter how big a bite HMRC takes out of your business when we get there.… Continue Reading
