More U.S. employers are facing charges of paying workers as independent contractors rather than employees, according to a recent report by the U.S. Dept. of Labor.
In fiscal 2009, the Labor Department ordered employers to pay $2.6 billion in back wages to 2,190 workers they had mislabeled as independent contractors. That amount jumped to $6.5 billion paid to 5,261 employees in fiscal 2010.
Plaintiffs complain that employers can use the contractor label to dodge paying benefits, pay less than standard wages and avoid payroll taxes.
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