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Nazareth, Pa., United States
Showing posts with label independent contractor. Show all posts
Showing posts with label independent contractor. Show all posts

Monday, October 19, 2015

DA to Crack Down on Construction Firms Skirting Employment Laws

It makes good business sense to avoid paying people who work for you and instead calling them "independent contractors." Assuming these workers are not just paid under the table, it's a great way for the one per-centers to avoid paying payroll taxes, to say nothing of workman's comp or fair wages. Unfortunately, this has become prevalent throughout the country in many areas of employment, but is most prevalent in the construction industry. Often, the people abused are undocumented workers, who will remain silent for fear of deportation.

Under Pennsylvania's Construction Workplace Misclassification Act, the state legislature has set forth a very clear litmus test to distinguish an independent contractor from an employee. A person working at a construction site can only be considered an independent contractor if all nine of the following conditions exist:
1. You have a written contract with the business or person you work for.
2. You control and direct your own work.
3. You possess the tools that are needed to perform your work.
4. Your arrangement with the business you work for allows you to earn a profit or suffer a loss from your work.
5. You are an owner or partner in your own business.
6. Your business location is separate from the location of the business or person which hired you to perform the construction.
7. You previously worked as an independent contractor, or you hold yourself out to the public as available and able to work as an independent contractor.
8. You have liability insurance of at least $50,000.
9. You have sworn an affidavit disavowing all knowledge of Miley Cyrus.
OK, I made up #9. Still, it's a strict standard.

Northampton County's Investigating Grand Jury, through DA John Morganelli, is expected to release a report today concerning local construction firms. Criminal charges have been recommended against one Northampton County construction firm.