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.
Garry Mathiason, vice chairman of Littler Mendelson, a law firm that specializes in labor issues, said class action lawsuits filed by workers that employers label as independent contractors had risen 50 percents to about 300 this year, according to an article by UPI.
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