According to the U.S. Department of Labor, today’s workers are in need of new protections for their basic rights. Businesses are outsourcing their costs and activities to boost productivity, using third-party management, staffing agencies, subcontractors, and similar nontraditional workers. While this may be cost-effective for businesses and employers, the negative consequence for employees is the risk of being misclassified as an independent contractor.
Classifying workers as independent contractors instead of employees allows businesses to cut labor costs. However, misclassifying employees denies workers from basic protections like minimum wage earnings, overtime pay, worker’s compensation, guaranteed family or medical leave, unemployment insurance, and health and safety insurance. The destructive nature of misclassification harms the workers, law-abiding employers, and the economy as a whole.
Protecting Home Care Workers
The misclassification of home care workers is particularly detrimental to society because of the nature of their work. Those who provide home care for aged, disabled, or ill citizens deserve wage protection so that they can continue to offer these essential services. Furthermore, individuals who depend upon their services deserve to be treated not by overworked, underpaid, misclassified employees but by stable, professional workers. These protections help not only the home care workers but also those who rely upon their services so that they can receive care in their own homes and communities.
The U.S. DOL has taken this recent trend of employee misclassification very seriously. Consequently, the DOL has updated the rules to protect home care workers, guaranteeing them minimum wage pay and overtime protection. Many state labor agencies support these actions and are striving to help the DOL end employee misclassification. Employers of home care workers should be aware that compliance is of the utmost importance, and their workers must be properly classified and paid according to the law. Workers’ rights ought to be protected, especially in the home care field, so that they can receive fair pay for their labor as they continue to care for our loved ones.
What This Means For Your Company
Government regulators like the DOL are looking closer than ever at companies that have habitually treated workers as independent contractors because in their view, these companies have been misclassifying their workers from the beginning. If history shows that your company has several 1099s, your company may be a target of this scrutiny. Furthermore, all it takes is one wage or unemployment insurance claim to draw not just one audit but many, including the DOL, IRS, state unemployment, and disability and state wage hour audits. The key to avoiding audits of this nature is in figuring out how to avoid claims in the first place and how to respond appropriately if they do occur.
If you have any questions regarding these legal changes, Consultech can help. Our experts at Consultech can help you navigate these laws to ensure that your business is fully compliant. Compliance with federal wage and hour laws will ensure that your workers are protected, you run a law-abiding business, and you are doing your part to contribute to a healthy economy.
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