If new proposed legislation passes, not only will employers face stiff penalties for misclassification errors, they’ll also have a number of new responsibilities under the Fair Labor Standards Act.
The new version (previously introduced last year) of the Employee Misclassification Prevention Act has landed in Congress. It would make misclassifying a full-time employee as an independent contractor a federal offense, regardless of whether or not the error was unintentional.
In addition, every employer would be required to provide written notices to all employees who perform labor or services for it if they have been classified as full-time employees or “non-employees” (ICs) – and why they have been classified that way. This would have to be done within six months of the bill’s enactment.