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01/31/2013

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This truly is scary. As covered in the past in http://www.compensationcafe.com/2011/03/could-you-be-accused-of-wage-theft.html and http://www.compensationcafe.com/2011/05/we-is-the-enemy.html and in other forums, it seems inevitable. Simply by tweaking administrative regulations fully under the control of the Executive Branch, Congress and the Courts can and will be bypassed.

The additional penalties under the PPACA ("the Affordable Care Act") for employers who fail to properly supply health benefits to their employees put extra fangs in these measures. If DOL WHD discovers that certain workers under your control are misclassified as independent contractors rather than as regular employees, you suffer draconian penalties and fines sure to please a cash-strapped government. Plus, there will be political advantages to those who rescue the helpless victims from their rapacious exploiting employers. Start thinking about how you are going to justify calling people "contractors" who work on your premises using your equipment and following your instructions just like your regular employees. Take care to confirm that your documentation of exempt status determination is complete, current and correct; because if your "exempts" aren't doing what you claimed when an examination inspector appears, you'll be slammed.

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