Urgent Legal Update for Companies Using Independent Contractors in California

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Effective 1st January, 2012 a new California law introduces huge penalties for cases of Independent Contractor misclassification. HR.com has scheduled an urgent webcast that will provide insight and advice from industry leading experts.

www.clearpathwm.com

The current federal budget allocated $46 million to both the IRS and DOL to investigate and prosecute worker misclassifications

With the California regulations coming into effect so soon, businesses utilizing contract workers should attend the webcast as they need to be aware of how the new law will affect them. Jason Posel and Douglas Farmer are two of the leading experts in contractor compliance, and have been invited by HR.com to present on how companies can protect themselves.

The new California law, SB 459, subjects companies and individuals to penalties of up to $25,000 for each violation for misclassification, creates employer liability for fees and deductions imposed on misclassified contractors, and makes consultants and others who advise businesses on independent contractor issues subject to liability.

This new regulation has received a lot of publicity, with workers themselves becoming increasingly aware of their rights, and comes hot on the heels of the new IRS amnesty program for IC misclassification.

“The current federal budget allocated $46 million to both the IRS and DOL to investigate and prosecute worker misclassifications” said Jason Posel, SVP strategy and solutions for ClearPath, adding “the amount of audits has increased dramatically, and now states such as California are showing they are just as determined to pursue the tax dollars they would receive if ICs are reclassified as common law employees. For many companies, the results of an audit could be financially crippling”.

This webcast will:
•Provide insight on SB 459 that will become law on January 1, 2012;
•Cover the latest legislative and regulatory issues focused on worker misclassification, including California’s SB 459 and the IRS’ contractor “amnesty” program;
•Review recent court cases, with a focus on California, and the impact they could have on your business;
•Examine ways to determine who qualifies as a 1099 contractor and who should be a W-2,
•Evaluate the risks companies have who misclassify workers, including possible financial penalties of reclassification, co-employment risk, wage and hour related issues;
•Identify strategies for mitigating the risks of misclassification;
•Reveal best practices for engaging contingent labor and Independent Contractors

ClearPath’s services are designed to help ensure companies are compliant with all contingent labor regulations. ClearIC is the most comprehensive IC evaluation and classification service. The web-based program is designed to determine if a worker should be engaged as an IC versus employee, and protect companies from the risks of 1099 misclassification. More information about ClearIC is available at http://www.clearpathwm.com/clearic.

WEBCAST DETAILS
DATE:             Thursday, December 8, 2011
TIME:             12 – 1pm PST
PRESENTERS:         Jason Posel; SVP Strategy & Solutions; ClearPath     Workforce Management
Douglas Farmer; Attorney & Managing Shareholder; Ogletree, Deakins, Nash, Smoak & Stewart
HOSTED BY:          HR.com
REGISTRATION: Click here to register    

About ClearPath
ClearPath is a leading certified woman-owned HRO with a focus on the contingent labor market. With almost 20 years of experience in delivering contractor engagement, payroll and compliance programs, the firm’s solutions include ClearPayroll and ClearIC. ClearPath provides its clients with seamlessly integrated solutions that enable them to engage the contract talent they require in a compliant, cost-effective and efficient manner. ClearPath delivers solutions throughout the US, Puerto Rico, Mexico and Canada.

ClearPath was recently ranked as one of the top 35 Fastest Growing US Staffing Companies in 2011, and as one of the top 25 Diversity Staffing Firms by Staffing Industry Analysts.

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