Employee vs IC - U.S. Labor and Treasury regulators announced a huge new - enforcement campaign this year

I just got an Email from BLR (Business and Legal Resources).  They provide information to Human Resources Departments to make sure they are following federal and state laws. 

One of their upcoming Webinars is regarding “Employee versus Independent Contractor.”  Too bad I cannot afford it ($219).  I would really be interested in what they have to say since Employee versus Independent Contractor has been a hot topic on this Board, and from the responses, there are still many people who misunderstand the rules and regulations.

I really hope MTSO “suits” from the offending companies are aware of what is ahead of them.    

I found some of the points they are going to discuss interesting:

Employee vs. Independent Contractor: Where’s the Line? Make the Proper Call & Stay Out of Court

Employee vs. Independent Contractor Webinar

Employee or independent contractor? That’s the million-dollar question—literally—facing many employers these days:

• Classifying workers as contractors can be very tricky – especially since the IRS, the Fair Labor Standards Act (FLSA), Title VII, and state-level regulations all define “contractors” in different ways.
• U.S. Labor and Treasury regulators just announced a huge new enforcement campaign this year, hiring more inspectors and giving grants to states to pursue employers that misclassify contractors.
• If you incorrectly designate an employee as a contractor (even if it’s an honest mistake), you’ll face costly penalties and back-tax claims.

You’ll learn:

• The most current federal and state tests used to determine whether a worker is an employee or an independent contractor
• What types of workers cause the most confusion with classification, from construction and franchise personnel to trainees and home-based staffers
• The “red flags” you should look for when you conduct a self-audit to identify potential contractor problems
• The safest ways to correct contractor misclassifications (without triggering a legal claim in the process)
• How to create bulletproof contractor agreements that will survive in state and federal courts
• What steps you should follow to sever your relationship with any contractor

Looks like there may be some shake-ups coming if it is true that the “U.S. Labor and Treasury regulators just announced a huge new enforcement campaign this year, hiring more inspectors and giving grants to states to pursue employers that misclassify contractors,” since we know many companies already are taking advantage of Independent Contractors who are actually Employees.   It looks like there is a good chance that any company that has Employees AND Independent Contractors will probably be audited soon. 

Because of TAT issues, the unintended consequence would hurt us more than help us.  These companies may find it impossible to keep Independent Contractors, since in all likelihood they will no longer be able to force a schedule on Independent Contractors.  That means, either these companies will require that everyone become an Employee, or they will let all the Independent Contractors go and start off-shoring more to India, where they do not have to deal with this issue.

Bottom line – in the next few years, the only Independent Contractors left may be individuals who have small accounts of their own.  It looks like the big MTSO who offers Independent Contractor status may be a thing of the past. 

Just one more nail in the coffin of the Medical Transcription profession.  I certainly would not encourage anyone to begin classes now.  If you think jobs are hard to find now, wait until several thousand Independent Contractors start looking for Employee status positions. 

I hope I am wrong.  But the writing seems to be on the wall.  It is just a matter of time before there will only be a few super-max, MedQuist-like MTSOs left and we either work for them or have to choose another career.

Sad -- to say the least.