Spring is in the air, and we’re hoping that your business is picking up as the weather warms up for the new season.
We’re excited to announce an opportunity to attend a breakfast briefing with our employment attorney, Eric Sohlgren. Eric will be speaking about the successes and mistakes that employers have made in court and how you can use those experiences to protect your company. Please review the invitation below and RSVP as noted. For other newsworthy articles, please read on…
—Terri Olson
Presented by Eric C. Sohlgren, Esq.
Partner, Payne & Fears LLP
Judges Micromanaging the Workplace:
Learning from Employer Successes and Mistakes
in Recent Court Decisions
March 30, 2010
7:30 am - 9:00 am
The Pacific Club
4110 MacArthur Blvd.
Newport Beach, CA
Please RSVP to Julie Gastelum
949-797-1241 or
*Seating is Limited*
About the Presenter:
Eric C. Sohlgren has broad experience and expertise in employment law, representing companies, managers and employee benefit plans in litigation matters in state and federal courts, and in administrative proceedings. With an executive background in human resources, Mr. Sohlgren frequently advises employers on legal compliance and preventative measures to minimize the risk of litigation.
A frequent speaker, Mr. Sohlgren has presented hundreds of lectures and seminars on employment law to attorneys, business and non-profit executives, and human resources professionals. He has published numerous articles on employment law. For over ten years he has been Editor-in-Chief of an annual publication that is used to educate attorneys throughout California about recent developments in employment law.
This is a common question that we get from our clients. Although it is advantageous to the business to have independent contractors over employees, make sure that yours qualify for the designation.
According to the IRS, people engaged in an independent trade, business, or profession in which they offer their services to the general public generally are not employees. However, whether such people are employees or independent contractors depends on the facts in each case. The general rule is that an individual is an independent contractor if you have the right to control or direct only the result of the work and not the means and methods of accomplishing the result. If workers must follow your instructions on when, where, and how to do the work, they are more likely to be employees. The law favors classifying workers in an employee status whenever possible.
Although classifying an individual as an independent contractor can be a valid and appropriate business choice, employers need to exercise extreme caution in making the proper distinction between employees and bona fide independent contractors. Failure to make the correct decision is risky business. In addition to back taxes or premiums, sanctions can include civil fines, interest, and criminal prosecution.
For the IRS list of questions to consider in determining whether an individual is an employee or an independent contractor, click here.
The Senate passed a jobs bill Wednesday March 10, 2010 extending the COBRA subsidy program through December 31, 2010 for employees who were involuntarily terminated. The Wednesday Senate vote followed a stopgap extension for employees terminated involuntarily from March 1 through March 31 that President Obama signed into law last week.
The Senate introduced its measure as a substitute amendment to H.R. 4213, a bill already passed by the House. It added the provision that allows employees who first lose group coverage due to a reduction in hours and then are involuntarily terminated to receive the COBRA premium subsidy, as long as certain conditions are met. The Senate bill now goes back to the House to be reconciled with the House bill before being sent to the President for signature.
ARRA, as amended by the Temporary Extension Act of 2010 (TEA), mandates that benefit plans (health, dental, etc.) notify certain current and former participants and beneficiaries about the premium reduction.
The Department of Labor (DOL) created model notices to help plans and individuals comply with these requirements. Each model notice is designed for a particular group of qualified beneficiaries and contains information to help satisfy ARRA’s notice provisions, including those added by TEA.
With the ongoing changes, you can understand why we recommend our clients outsource this task! However, if you administer COBRA in-house, please call or e-mail us to obtain the latest copies or go to the DOL website: http://www.dol.gov.
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