Staffing PEO Alleged to Have Misclassified Workers as Independent Contractors

Are Employees REALLY Independent Contractors?

The State Labor Department (NY) reports a staffing agency operator misclassified 100 plus workers as independent contractors in excess of $95,000. In addition, the employer illegally deducted workers’ comp and liability insurance from the employees’ wages, charged them for transportation to work sites, fines for leaving early and payroll advance fees.

The staffing agency provides nurses and certified nursing assistants, for whom proper records, showing length of employment and pay rates.

The owner, free on $25,000 bail, had a conference call with the Labor Department last week and was told he has a few weeks to get an attorney and negotiate a settlement or the department can order him to pay back staff within a strict deadline. He has the right to appeal to the Industrial Board of Appeals. (workersxzcompxzkit)

See WCK Blog for Independent Contractor Rules. https://blog.reduceyourworkerscomp.com/?p=474
Extracted from: Times Union by Tim O’Brien, staff writer.

This blog originally appeared on the LexisNexis Workers’ Compensation Law Center.

Reposted with Permission Visit LexisNexis for more information and full reports.
http://law.lexisnexis.com/practiceareas/Workers-Compensation-Law-Blog/Workers-Compensation/Workers-Comp-Fraud-Blotter-7302009

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