Worker Classification

Worker classification issues pose constant challenges to employers for Internal Revenue Service (IRS) compliance, Employee Retirement Income Security Act (ERISA) coverage, litigation and state issues.  Mistakes can lead to costly class actions, IRS assessments and Department of Labor (DOL) audits.  Groom has advised the country's leading private and governmental employers on structuring their staffing arrangements, including:

• Contracts with individual consultants.
• Third-party leasing arrangements.
• Professional employer organizations.
• Full-time life insurance salesmen.
• "Leased employee" issues.
• Protective benefit plan provisions.

We have negotiated IRS settlements, obtained IRS rulings, and developed a variety of techniques to minimize risks that independent contractors may be deemed employees and avoid surprises.  And we regularly track significant legislative and regulatory developments likely to increase in the new Congress and Administration.

Publications

• IRS Announces New Voluntary Worker Classification Settlement Program
• The Return of Worker Classification Audits: Impacts More Than Employment Taxes
• Obama Budget Proposes Major Worker Classification Reforms
• IRS Worker Classification Initiative