Tackle this increasingly complex compliance dilemma with the first-ever intelligent compliance solution.
Independent contractor misclassification is perhaps the most difficult compliance issue that companies face today – with three different legal tests under federal law (IRS 20 factor, Fair Labor Standards Act (FLSA) “economic realities” and the Darden common law test) and up to four different legal tests in each state layered on top of the federal tests (tax, wage hour, unemployment and workers’ compensation).
Studies estimate that more than 40 percent of the workforce will be made up of independent contractors by 2020. Yet, standing in the way of this rapidly emerging economic shift and poised to seize upon the slightest 1099 misclassification are the IRS, the Department of Labor and state regulators, together with activists, unions and, of course, the plaintiffs’ bar.
Navigator IC reduces the time-consuming and confusing independent contractor analysis to an easy-to-use questionnaire. Once the questionnaire is completed, Navigator IC analyzes each individual fact pattern under all applicable federal and state tests. It rapidly applies complex logic based on Littler’s analysis of the facts that courts found most important to determining independent contractor status in more than 1,500 reported cases.
In addition to delivering an actionable risk assessment, Navigator IC provides a report on how to lower the risk of misclassification together with a summary of applicable laws and a transcript of questionnaire answers. Retrievability and management of Navigator IC evaluations are made easy through a customized dashboard.