Feds Collect $9.5 Million for Misclassified ICs

Posted by & filed under Categories: Healthcare & Staffing News. following_users: robeisman.

According to a Staffing Industry Analyst article more than $9.5 million in back wages has been collected for 11,400 workers misclassified as independent contractors since September 2011, the U.S. Department of Labors’ Wage and Hour Division announced last week.   Overall, the department of Labor indicated that $29 million in back wages have been recovered for misclassified employees since 2009. On September 2011 memorandums of understanding (MOU) with 13 states went into place to root out companies misclassifying workers. Last week the U.S. Department of Labor announced its 14th state Iowa, entering into a MOU. Under this agreement, the agencies will work together to coordinate both agencies’ law enforcement efforts aimed at businesses that misclassify employees as independent contractors in order to share information and reduce the incidence of misclassification of employees. The states that have signed similar agreements include California, Colorado, Connecticut, Hawaii, Illinois, Louisiana, Maryland, Massachusetts, Minnesota, Missouri, Montana, Utah and Washington.

Healthcare Select (HC Select) can help employers take appropriate actions to accurately classify their contingent workforce.  We conduct a comprehensive analysis of your current 1099 contractors to protect and ensure your organization meets the IRS federal and state requirements for classifying contingent workers.  We provide ongoing education and training, file documentation, audit and maintenance support services and professional payrolling services to move the employment risk from your hospital to HCSelect.  We put in place a robust employment screening process to assist clients and their IC’s in determining if in fact they are truly independent contractors in the eyes of the taxing authorities.  We will ensure you truly know who you’re hiring!

Contact HC Select today or call (877) 277-8797.

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