Independent Contractor (IC) compliance is all about the rules and regulations that businesses need to follow when working with 1099 workers. These guidelines are set by federal and state governments to ensure everything is done by the book. Navigating these compliance requirements is crucial for organizations to steer clear of legal troubles and hefty fines. The tricky part? IC compliance can differ based on where you are and what industry you're in. So, where should you start? Check out our fact sheet: Common Mistakes When Engaging Independent Workers https://lnkd.in/gR9WyuJm
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Independent Contractor (IC) compliance is all about the rules and regulations that businesses need to follow when working with Independent Contractors (1099 workers). These guidelines are set by federal and state governments to ensure everything is done by the book. Navigating these compliance requirements is crucial for organizations to steer clear of legal troubles and hefty fines. The tricky part? IC compliance can differ based on where you are and what industry you're in. So, where should you start? Here are 6 common mistakes to avoid when working with Independent Contractors.
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The #1 mistake small/new business owners and solopreneurs make that will cost thousands $$$$ in legal penalties and fines is: 📝 Misclassification of workers. The main difference between an employee and an independent contractor is: ◼ Employees are hired for an employer and job duties are outlined for them. Employees complete daily tasks that carry the day-to-day operations in a business. ◼ Contractors provide a service and there are no specific job duties assigned. Often times, it's a one-time service contract for specific deliverables and should be outlined in some sort of contract agreement. If you have hired contractors (1099s) for your business and you are relying on the contractor to complete daily task that carry majority of the weight of your business operations, you JUST might have an employee. Not knowing doesn't release the legal liability 🤑 if you misclassify workers in your business. Reach out if you have any questions regarding classification of workers. 1-4-24 #hrcompliance #hrconsulting #freelancehrconsultant #businessconsulting #creatoreconomy #latinasinbusiness #latinamentor
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Attention employers/businesses: No more non-competes with workers! The Federal Trade Commission has issued a new rule that non-compete agreements between employers and workers that take effect after employment termination violate federal antitrust laws. The rule doesn't apply to non-competes entered in the course of a business sale, nor does it invalidate lawsuits for existing violations of non-compete agreements. It also does not appear to apply to agreements between companies or to agreements that are effective during the course of employment. Beginning 120 days after the new rule is published in the Federal Register (it hasn’t happened yet so the official date is currently unknown), it will be considered an unfair trade practice to require or ask any worker (defined as "a natural person who is employee, independent contractor, extern, intern, volunteer, apprentice, or sole proprietor who provides a service to a person") to agree to a non-compete, whether by contract or policy, verbally or in writing. It doesn’t matter how the worker is classified under state law or other federal laws. Existing non-competes with most workers will be unenforceable once the rule takes effect, with a limited exception for those with senior executives (people who are in a policy-making position for the business making total annual compensation of at least $151,164). Once the rule becomes law, neither workers nor senior executives can be made subject to a non-compete. Action Steps: 1. Do not enter into new non-compete agreements with workers. 2. Review your employment contracts and policies to remove non-compete language. 3. Document the contact information of every worker with whom your business has a non-compete that would still be in effect but for the law changing. 4. Provide a notice of non-enforceability (see below) to all workers with whom you have or had any non-compete agreements or policies in place. **Notice of Nonenforceability This is a written notice alerting workers that their non-compete clause will not be enforced against them. The person who entered into the non-compete clause with the worker must identify themself and provide clear and conspicuous notice by the effective date of the rule. The notice must be either on paper hand-delivered to the worker or mailed to their last known personal street address, or sent by email to the worker's current work email address or last known personal email address, or texted to their mobile phone number. The FTC has provided model language (posted in the comments) to use in the notice. Be sure to customize the language by altering the text in the bracketed areas (delete the brackets so it reads properly). If the complete notice is properly sent, the employer can present it as evidence of compliance. Contact your attorney for more information. #law #legalguide #businesslaw #freelancer #selfemployed #sidegig #compliance #legalhelp #trademarks #copyright #marketinglaw #author #noncompete #employer
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Business Solutions and Employee Benefit Specialist / Independent Associate @legalshield / Conflict Resolution Expert
5 Reasons Contract Workers Need Legal Protection There are a lot of businesses whose employees are contract employees. Contract employees have several names. They may be independent contractors, 1099 contractors, freelancers, or self-employed individuals. Contractors in fields like electrical and HVAC face the daily risk of being held liable. This happens while they work on clients' properties. It is also true for those in home healthcare, roofing, and other home services. Here are other reasons: ✅ Contract Disputes: Contract workers often have written agreements with clients or employers. These agreements can lead to disagreements. Legal protection ensures they can get expert advice and help if there's a problem. ✅ Intellectual Property: This is important for contract workers, like artists or writers. Legal protection helps them understand how to keep their work safe. It covers things like copyrights and trademarks. ✅ Payment and Invoicing Issues: Clients don't always pay on time, which can be challenging for contract workers. Legal protection can make writing clear contracts easier and solve payment problems. ✅ Liability Concerns: Contract workers might be blamed if something goes wrong while they're working. Legal protection can help lower these risks and give advice on getting insurance to stay safe. ✅ Employment Classification: If contract workers are treated like employees or the other way around, it can lead to big problems. Legal protection helps workers know what they are and follow the right rules for their work. Millions of contractors risk their businesses every day because they lack the protection they need to run them properly. Contractors often get a bad rap for being unreliable, not finishing their work or doing a poor job. But there are two sides to that coin. Good contractors are often not paid on time (or at all), treated rudely by clients and even accused of damaging property they never touched. 🤦♀️ Unlike a contract worker, AI can work as it sees fit. With this image, I got an eyeless dog, a woman who can levitate her beverage, and a machine I doubt is a lawnmower. Who do you know who is a contractor who loses sleep because of legal issues they don't know how to handle? 🔔🔔 Follow Me and Click On My Bell for post notifications 🔔🔔 #contractors #entrepreneurship #business #legalissues #equaljusticeunderlaw
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For SMEs, knowing the costs involved in terms of benefits to be paid and compliance requirements; helps them to decide the viable options. Knowing the company’s bottomline and the risks the company can take makes it easier to decide which option to go for. The obligations indicated below will give you insights on which option to settle on. #contractofservice #contractofservices #verses #contractforservice #contractforservices #employees #employeesonly #employeespotlight #consultant #independentcontractor #independentcontractors #employmentlaw #employmentlawkenya. Was this content helpful? Like, share, comment and follow us for more.
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DEADLINE DAY IS HERE! A reminder that the deadline to submit your Intermediary Report to HMRC is today! For 3R's back-office users it’s super quick. All you need to do is download your perfectly formatted intermediary report from our system, & upload. #HMRC #Recruitment #Compliance
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DEADLINE DAY IS HERE! A reminder that the deadline to submit your Intermediary Report to HMRC is today! For 3R's back-office users it’s super quick. All you need to do is download your perfectly formatted intermediary report from our system, & upload. #HMRC #Recruitment #Compliance
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Question of The Week! Can we classify a worker as an independent contractor? ANSWER It depends! Misclassifying employees as independent contractors can lead to legal issues and penalties. The IRS uses a set of criteria to determine the correct classification, focusing on the degree of control and independence in the working relationship. Factors include how much control you have over what the worker does and how they do their job, whether they use their own tools and equipment, and if their work is an essential part of your business. When in doubt, consult a legal expert to ensure you're making the right classification. Get in touch for a complimentary session on compliance: https://lnkd.in/eHeabCny To signup for compliance updates visit www.5ftview.com #SmallBusinessTips #HiringBestPractices #EmploymentLaw #HRCompliance #WorkplaceManagement #IndependentContractors #BusinessAdvice
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When Labour Laws Audit Fails, Compliance manager Reaction 😂 😂 . To avoid any non-compliance in Labour Laws, call for a demo of our most intelligent Compliance Management software. #labourlaw #compliance #Software #legal
When Labour Laws Audit Fails, Compliance Manager Reaction
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I'm sure many have heard about the major ruling from the FTC this week to ban non-compete clauses. Legal challenges were expected, and indeed the first of these was filed only hours after the announcement. It is unclear what the future holds and how long it may take such lawsuits to work their way through the system. In the meantime, employers should take the following steps... 1. Review the final rule linked at the bottom of this blog post. 2. Determine affected workers or independent contractors who will need to be provided with notice of non-enforcement. 3. Review restrictive covenants and confidentiality agreements with legal counsel for applicable updates.
FTC Votes to Ban Non-Compete Agreements - Will it Survive Legal Challenges? | OneDigital
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