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May 14, 2010
What Can You Do to Correct Independent Contractor Misclassifications?

Maria Anastas discusses independent contractor misclassifications in a BLR webinar entitled ‘Employee versus Independent Contractor: Where’s the Line? How to Make the Proper Call and Stay Out of Court’. She provides the following information regarding what organizations can do to correct independent contractor misclassifications:

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  • Correcting independent contractor misclassifications depends on what the organization or employer is willing to do
  • It also depends on what state or states the organization is operating in
  • There will be some potential liability associated with converting an independent contractor to an employee because the taxing authorities will notice the appearance of a deduction related to the individual
  • Communicating with the individuals regarding the potential conversion, may need to also involve the organization’s legal counsel before actual conversion is attempted
  • Also, some organizations may be willing to pay whatever they need to pay upfront rather than wait for any possible investigation into the conversion
  • It can become a very complex process. Hence, it is advisable to contact the legal representative of the organization before taking part in a conversion

Maria Anastas is a partner in the San Francisco office of law firm Ogletree, Deakins, Nash, Smoak & Stewart, PC ( www.ogletreedeakins.com ). She represents employers in labor and employment law matters exclusively, with a primary emphasis on traditional labor matters. She also devotes a substantial portion of her practice to providing employers with practical advice on a wide variety of employment law issues. She can be reached at maria.anastas@ogletreedeakins.com.

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