Obama Budget Proposes Major Worker Classification Reforms

Following closely on the recent IRS announcement of a 3-year worker classification study affecting 6,000 employers, the 2011 Obama Administration Budget includes new legislative proposals to "increase certainty with respect to worker classification."  The Administration's proposals would send a strong signal that it supports potential groundbreaking changes – which are likely to have ripple effects on employee benefit programs, wage and hour laws and many other areas.  Please see the attached memo for further information. 

In light of these developments, we recommend employers carefully review their worker classification positions (and supporting documentation) as well as their pension and welfare programs, and consider changes in guidelines and plan amendments to limit any potential reclassification exposure.  If you need assistance with your review or want to join our efforts to preserve the important current law relief provisions, please click here to stay involved.