In This Issue:

- Introduction

- Independent Contractor Misclassification: How It Has Arisen

..The Economic and Business Advantages of Using Independent Contractors

..Lax Enforcement and Different Legal Tests

..Increased Use of Independent Contractors Leads to Rise in Intentional and Unintentional Misclassification

- The Costly Consequences of Misclassification

..Unpaid Payroll and Unemployment Taxes, Overtime, Minimum Wages, Employee Expenses and Other Employee Payments

..ERISA and Affordable Care Act Exposure

- Federal and State Regulatory Enforcement Initiatives

..U.S. Department of Labor

..Internal Revenue Service

..State Workforce Agencies

- Legislative Initiatives

..State Laws Designed to Curtail Misclassification

..Federal Bills Aimed at Misclassification

- Class Action Lawsuits

- The Impact of Labor Organizations and the Potential for Unionization

- Three Alternatives to Minimize or Avoid Future Misclassification Exposure

..Bona Fide Restructuring and Re-documentation — and the Use of IC Diagnostics™

..Reclassification — Either Under a Government Program or Voluntarily

..Redistribution of Independent Contractors — Using a Workforce Management or Staffing Company

- Conclusion

- Excerpt from Independent Contractor Misclassification: How It Has Arisen:

Independent contractors — sometimes referred to as freelancers, consultants, per diems, 1099ers, contractors, project workers, temps, specialists and the like — are found in virtually every industry. Some companies use independent contractors to supplement their workforce, while other businesses have been built on an independent contractor or 1099 model and classify relatively few workers as employees.