Tag Archives: independent contractors

Misclassifying Workers as Independent Contractors: What Employers Need to Know

Idaho businesses often use independent contractors because they think it saves them money, but if these same businesses don’t follow the rules, it will cost them a whole lot more than they bargained for with potential criminal issues and severe monetary fines.

kiel_110810_4988“That’s why we’re here,” explained Idaho Department of Labor Director Ken Edmunds. “We can help clarify when an employee is an employee or an independent contractor. If an Idaho business is considering the option of using independent contractors, the business should call us first so we can walk through the rules and make sure workers and independent contractors are properly classified. “

A memorandum of understanding signed by the Idaho Department of Labor and the U.S. Department of Labor Wage and Hour Division in August of 2015 means the two agencies will work together to protect Idaho workers by preventing their misclassification as independent contractors or other nonemployee statuses. Both agencies will share information and coordinate law enforcement under the agreement.

Continue reading