|
APPLIES TO
All Employers with TN Independent Contractors
|
EFFECTIVE
January 1, 2020 |
QUESTIONS?
Contact HR On-Call
(888) 378-2456
|
HB 539 rejected the state appeals court adoption of the “ABC” test, and implemented the historical IRS 20-factor test to determine independent contractor status. The bill defines employment status where “the individual performs services for an employer for wages and the services performed by the individual qualify as an employer-employee relationship” based on the 20-factor test. Although the 20-factor test is no longer the official IRS test, several states still look to the standard when determining what employment status applies.
Generally, the 20-factor test looks at the behavioral control, financial control, and the type of relationship of the parties. None of the factors are determinative of an employment relationship and there is no presumption of employee status. Although the “ABC” test is largely more restrictive than the 20-factor test, employers should still review independent contractor relationships with legal counsel before the law goes into effect.
Action Items
- Have independent contractor status reviewed with legal counsel for compliance.
- Subscribers can call our HR On-Call Hotline at (888) 378-2456 for further assistance.
Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser.
© 2019 ManagEase
New York: Get Ready for Expansive State Discrimination Law Reforms
/0 Comments/in HR Alerts /by ManagEaseAPPLIES TO
All Employers with NY Employees
EFFECTIVE
As indicated
QUESTIONS?
Contact HR On-Call
(888) 378-2456
The New York legislature recently passed an omnibus bill that will amend a number of existing laws, greatly expanding the state’s expansive workplace harassment and discrimination protections. In addition, the amendments will cover all New York employers of any size. Governor Cuomo is expected to sign the bill shortly. Key changes are noted as follows.
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Oregon: Updates to Discrimination and Harassment Protections
/0 Comments/in HR Alerts /by ManagEaseAPPLIES TO
All Employers with OR Employees
EFFECTIVE
As indicated
QUESTIONS?
Contact HR On-Call
(888) 378-2456
SB 726, also known as the “Oregon Workplace Fairness Act,” extends discrimination and harassment protections for employees. On October 1, 2019, the statute of limitations for discrimination, harassment, and retaliation claims will be extended from one to five years. On October 1, 2020, with limited exception, employee agreements cannot require confidentiality, nondisclosure, nondisparagement, no-rehire provisions, or similar restrictions that prevent employees from disclosing sexual harassment or discrimination. Similarly, golden parachute clauses in employment agreements may be voided if the employer determines through a “good faith investigation” that the employee engaged in discrimination that was a “substantial contributing factor” in the employee’s termination.
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Tennessee: Chooses the Former IRS 20-Factor Test to Determine Independent Contractor Status
/0 Comments/in HR Alerts /by ManagEaseAPPLIES TO
All Employers with TN Independent Contractors
EFFECTIVE
January 1, 2020
QUESTIONS?
Contact HR On-Call
(888) 378-2456
HB 539 rejected the state appeals court adoption of the “ABC” test, and implemented the historical IRS 20-factor test to determine independent contractor status. The bill defines employment status where “the individual performs services for an employer for wages and the services performed by the individual qualify as an employer-employee relationship” based on the 20-factor test. Although the 20-factor test is no longer the official IRS test, several states still look to the standard when determining what employment status applies.
Generally, the 20-factor test looks at the behavioral control, financial control, and the type of relationship of the parties. None of the factors are determinative of an employment relationship and there is no presumption of employee status. Although the “ABC” test is largely more restrictive than the 20-factor test, employers should still review independent contractor relationships with legal counsel before the law goes into effect.
Action Items
Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser.
© 2019 ManagEase
Virginia: Employers Must Provide Employees’ Personnel Records on Request
/0 Comments/in HR Alerts /by ManagEaseAPPLIES TO
All Employers with VA Employees
EFFECTIVE
July 1, 2019
QUESTIONS?
Contact HR On-Call
(888) 378-2456
As of July 1, 2019, Virginia employers will be required to provide employees with copies of their personnel records upon request. Following an amendment to the Virginia Code, any written request from an employee or an employee’s attorney must be responded to within 30 days of receipt.
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August Updates
/0 Comments/in HR Alerts /by ManagEaseAPPLIES TO
Varies
EFFECTIVE
Varies
QUESTIONS?
Contact HR On-Call
(888) 378-2456
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IMMEDIATE UPDATE: Massachusetts Extends Deadlines for Paid Family Medical Leave Again!
/0 Comments/in HR Alerts /by ManagEaseAPPLIES TO
All Non-Government Employers with MA Employees
EFFECTIVE
June 13, 2019
QUESTIONS?
Contact HR On-Call
(888) 378-2456
Governor Baker recently signed an emergency bill changing key deadlines for the Paid Family Medical Leave law (PFML). Specifically, employers were required to start withholding employee contributions for PFML on July 1st, and submit first quarter contributions by October 31st. Now, with a three-month extension enacted, employers must begin payroll withholdings as of October 1, 2019, and contributions will be due January 31, 2020. This change was to allow businesses sufficient time to implement the PFML program.
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Does Your Organization Pass Muster? Check out the New Corporate Compliance Guidance from the DOJ
/0 Comments/in HR Alerts /by ManagEaseAPPLIES TO
All Private Employers
EFFECTIVE
May 1, 2019
QUESTIONS?
Contact HR On-Call
(888) 378-2456
The U.S. Department of Justice (DOJ) recently issued a document entitled “Evaluation of Corporate Compliance Programs,” providing guidance to federal prosecutors on how to evaluate a corporation’s compliance program “for purposes of determining the appropriate (1) form of any resolution or prosecution; (2) monetary penalty, if any; and (3) compliance obligations contained in any corporate criminal resolution (e.g., monitorship or reporting obligations).” Essentially, the strength of a compliance program may serve to decrease or increase potential sanctions and disciplinary measures sought by the DOJ should your organization ever be prosecuted for a violation of law.
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Which Way is the Wind Blowing on Independent Contractors Lately?
/0 Comments/in HR Alerts /by ManagEaseAPPLIES TO
All Employers with Independent Contractors
EFFECTIVE
April 29, 2019
QUESTIONS?
Contact HR On-Call
(888) 378-2456
The question always seems to be – which way is the wind blowing on independent contractors lately? The answer depends on who is asking and in what state they work. Most recently, the U.S. Department of Labor (DOL) issued an opinion letter indicating that gig economy workers who are part of the virtual marketplace are likely independent contractors, provided they meet the six-factor economic realities test. The DOL stated that a virtual marketplace company (VMC) “is an online and/or smartphone-based referral service that connects service providers to end-market consumers to provide a wide variety of services, such as transportation, delivery, shopping, moving, cleaning, plumbing, painting, and household services.” The role of VMC’s is to help consumers more readily connect with the services they are looking for.
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Ninth Circuit: The Dynamex Independent Contractor Test Applies Retroactively
/0 Comments/in HR Alerts /by ManagEaseAPPLIES TO
All Employers with CA Employees
EFFECTIVE
May 2, 2019
QUESTIONS?
Contact HR On-Call
(888) 378-2456
In Vazquez v. Jan-Pro Franchising, Inc., the Ninth Circuit stated that the California Supreme Court Dynamex decision applies retroactively. Specifically, Dynamex created the ABC test for determining whether an individual is an independent contractor for purposes of state wage and hour laws. Unfortunately, at the time, the California Supreme Court did not indicate whether or not Dynamex was to apply retroactively. Now, the Ninth Circuit has officially answered that question.
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California: Employees Can Provide Implied Consent to Arbitration Agreements Over Their Own Objections
/0 Comments/in HR Alerts /by ManagEaseAPPLIES TO
All Employers with CA Employees
EFFECTIVE
April 10, 2019
QUESTIONS?
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(888) 378-2456
In Diaz v. Sohnen Enterprises, the California Court of Appeal stated that an agreement to arbitrate employment disputes was formed by implied consent following notice to the employee. There, the employer notified its employees that it was changing the terms of its dispute resolution agreement, including requiring arbitration of all claims. A copy of the agreement was provided to employees, the terms were discussed in a staff meeting in English and Spanish, and the employees were told that continuing to work for the employer would constitute acceptance of the agreement, regardless if the agreement was actually signed. An employee subsequently indicated her refusal to sign the agreement but intended to continue working. She then filed a discrimination lawsuit against the employer.
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