This month we bring you the latest news on employment and payroll law for February 2023. Get caught up on the most recent changes in legislation, as well as updates on cases and law developments that could impact your business.
Proposed NY State Senate Bill Resembles California’s AB5
The State of New York’s Senate Bill S2052, proposed last month, would establish new criteria for determining a worker’s classification resembling the criteria of California’s Assembly Bill 5. AB5 is a bill signed into law by Governor Gavin Newsom in 2019 that defines the lines between independent contractor (IC) and a full-time employee (FTE). The precedent set for determining worker classification defined by the bill is known as the “ABC Test“. Under this test, many freelancers currently contracting with companies won’t meet the legal definition of independent contractor if this bill is passed.
Read more from The New York State Senate.
$185K in Back Wages Recovered by DOL for Industrial Rack Installers in North Carolina
The US Department of Labor has successfully recovered $185,963 in overtime back wages that were owed to 181 employees at a North Carolina rack system installation company, IPD Company Inc. By being misclassified as independent contractors instead of employees, these workers were not paid the time-and-a-half overtime rather for hours over 40 in a workweek. This is an important reminder of the US government’s commitment to ensuring fair working conditions and providing necessary protections for all American laborers.
Wage and Hour Division District Director Richard Blaylock in Raleigh, North Carolina, said: “Employers who improperly misclassify employees as independent contractors strip these workers of their overtime and minimum wage and unpaid leave protections, shortchanges their Social Security benefits and prevents collection of payroll taxes owed to local, state and federal levels.”
Read the full story on the US Department of Labor Newsroom.
Jason Posel Speaking at SIA’s Executive Forum North America 2023
GreenLight Founder and CEO Jason Posel is speaking at Staffing Industry Analysts Executive Forum North America 2023 on The Future of Employer of Record and IC Compliance Services. During this featured session on March 8th at 11:45am ET, you’ll hear from the esteemed panel about the Future of Work and specifically the future of Employer of Record and independent contractor compliance – what are the forces behind this trend and what lies ahead?
For details and registration: www.siexecutiveforum.com
