Worker Misclassification Prevention (eLearning Module)
“Independent contractors” are people who are in an independent trade, business, or profession where they offer their services to the public. The share of independent workers at U.S. businesses was 16% in 2019, according to a report published by the ADP Research Institute, up 15% since 2010.
All employers are obligated under the IRS tax code and various labor laws to ensure that workers are properly classified as either “employees” or “independent contractors.” According to the U.S. Department of Labor and the IRS, as many as 30% of all independent contractors are misclassified. Misclassifying employees as independent contractors, or violating the legal rights of an independent contractor by treating them like an employee, can result in lawsuits, tax penalties, and other monetary penalties. Specifically, misclassification of a worker, whether intentional or unintentional, can result in violations of the IRS tax code, the Fair Labor Standards Act, and other employment laws. This module can help affected businesses demonstrate good-faith compliance with applicable laws and regulations. In addition, any new updates will be automatically published to your eLearning module for immediate reference
Features & Benefits Include:
- An interactive Worker Misclassification Prevention eLearning Module
- A digital Independent Contractor Classification Checklist to assist in determining proper worker classification
- A digital California Independent Contractor ABC Test – a California-specific version of the classification checklist
- A digital Independent Contractor Rights Acknowledgment Form for workers you have determined are independent contractors. Keep the completed form in the worker’s personnel file acknowledging his/her classification.
- A digital Department of Labor’s “Employee or Independent Contractor?” notice, informing workers on important misclassification facts.
This module will help employers understand:
- An introduction to misclassification
- Worker classification under the IRS
- Worker classification under federal employment laws
- State laws regarding worker classification including:
- California AB 5 and AB 2257
- How to correct worker misclassification
If you are not completely satisfied, you can return it within seven (7) days of receipt for a full refund.