Worker misclassification – Construction companies remain at risk for penalties

Description

Abstract: Construction companies need to be extra careful about properly classifying workers during the ongoing skilled labor shortage, which can increase the pressure to find ways to staff projects. This article discusses how and why worker misclassification occurs. It also reviews the current DOL final rule on worker classification and a proposed one. A sidebar looks at the IRS’s test for determining whether a worker is an independent contractor or employee for tax purposes.