As you may or may not know, the United States Department of Labor is waging a war against employers by accusing them of misclassifying employees as independent contractors. While these cases deal with divergent occupations such as musicians and exotic dancers, trucking companies are clearly being targeted in this sweep. In furtherance of the Feds’ crackdown, they have enlisted the State of California to establish “a collaborative relationship to promote compliance with laws of common concern in the state of California.” Their goal is to protect “the wages, safety, and health of America’s workforce.”
I think their goal is to generate revenue. I also think the state and federal governments are happy to take more money from trucking companies.
I won’t bore you with the details of this partnership, however if you’re interested in how the US Department of Labor Wage and Hour Division and the California Labor and Workforce Development Agency are working together, click on this link for their memorandum of understanding:www.dol.gov/WHD/workers/MOU/CA.pdf
And if that doesn’t sound ominous enough, The US Department of Labor will share information with the IRS to “reduce the incidence of misclassification of employees, help reduce the tax gap, and improve compliance with federal labor laws.”
Specifically, these governmental agencies will be looking for unpaid overtime compensation, FICA and unemployment insurance taxes, and Worker’s Compensation premiums. And while they’re at it, I’m sure they will throw in penalties and fees on top of that.
Will you be ready when the federal and state labor agencies knock on your door with their buddies from the IRS behind them? Is your house in order? If you cannot firmly and resolutely answer “yes” to those questions, you need to contact Transportation Attorneys today. Contact us at www.trucklawca.com or www.transportationattorneys.net so you can be proactive and in compliance with State and Federal laws.