Is there a new government initiative to focus on whether independent contractors are, in fact, misclassified employees?
Yes. The current administration has been scrutinizing whether employers are misclassifying independent contractors – who should really be employees receiving the legal protections, wages and benefits of employees. This has been an action item for both the U.S. Department of Labor (DOL) and the IRS (which notes that revenue may be missed when employment taxes are not withheld). Recently, the two agencies entered into an agreement to cross-refer cases to each agency, so that both agencies can investigate when an employer is accused of misclassifying an individual. The focus regarding misclassification of independent contractors is a call to all employers to ensure that any independent contractor that it utilizes meets all of the requirements of being such a contractor and is not an employee “in disguise."