So how do you know if you`re successfully using independent contractors? The Fair Labor Standards Act uses an economic realities test, while the IRS conducts an 11-factor test. The most important question seems to be: who controls – the worker or the company? To determine control, a court will consider factors such as: Who determines the workers` hours of work? Is the employee paid by the hour? Does the worker have daily orders? A supervisor? Does the employee have to register or register for assignments? These factors make the employee appear as an employee. For example, if the worker does the same job in a booth next to an employee, it is likely that he or she is also an employee. A real contractor will be assigned a project and will likely have the equipment and tools to complete the job. An entrepreneur should also have the opportunity to make profits and losses and not earn more by working more hours. The courts and various law enforcement agencies are also investigating the permanence of the relationship. If the worker has been there for years and does the same, he is probably an integral part of the company – namely an ”employee”. The National Labour Relations Board (NLRB) holds secret ballots to determine whether workers want union representation and investigates and eliminates unfair labour practices by employers and unions. 224 S Boulder Ave, Room 322 Tulsa, OK 74103 (918) 581-7951 Given that so many state and federal agencies clearly reject the use of independent contractors, why do employers hire independent contractors? Typically, an employer wants someone with a special skill, or they want the flexibility to hire employees for specific tasks, not full-time jobs. Hiring an independent contractor, when done properly, also avoids expenses such as employer-sponsored health insurance and 401(k) plans, overtime costs (the Fair Labour Standards Act only applies to ”employees”), source deductions, fica and OESC, as well as unemployment claims and workers` compensation liability. So let`s assume that one of the agencies mentioned has determined that you misclassified the employees. Or a worker complains and claims that he should have been an employee.

What is the amount of liability? Well, for federal contractors, the liability could extend to the loss of the government contract. So, what should you do if you think you`ve misclassified employees? Perform a self-audit. Look at all the individual employees you`ve classified as ”independent contractors.” If you are unsure or need help, please contact your labour lawyer. For years, we have warned employers of the dangers of misclassifying employees as independent contractors when they are in fact employees. Oklahoma`s labor laws allow employers to allow employees who breastfeed mothers to take unpaid leave to express breast milk. Employees may be allowed to take breastfeeding maternity breaks at the same time as other paid or unpaid breaks offered by the employer. OK Status 40-10-435 What does NOT make someone an independent contractor? If they sign a written contract stating that they are a contractor, if all the factors stand in the way of that conclusion, that is not the case. Even the mere issuance of a 1099 instead of a W-2 does not in itself regulate the day when all the factors are stacked in favor of the term ”employee.” Just saying ”Everyone in the industry does it this way” won`t get you very far either if the factors show that you, as an employer, control the work. ==References=====External links===Department of Labor – Wage and Hour Division Establishes fair labor standards for federal minimum wage, overtime pay, registrations, wage garnishment, child labor, and state contractual standards. The German government shows no sign that it is moving away from law enforcement here. Between 2008 and 2015, the Ministry of Labour (DOL) hired 2,000 investigators, doubling its number.

To intensify its efforts, the DOL is also turning to other agencies for cooperation. In fact, on September 13, 2016, the U.S. Department of Labor`s Wages and Hours Division announced a three-year Memorandum of Understanding (MOU) with the Oklahoma Job Security Commission (OESC). The MoU facilitates the exchange of information between state and federal agencies. For example, if the OESC determines that an employer mistakenly classifies employees as independent contractors to avoid state unemployment taxes, this information is shared with the DOL, which can then investigate and determine whether the employer has also misclassified employees to circumvent federal payroll and labor laws. Oklahoma labor laws require employers to grant employees under the age of sixteen (16) a 30-minute rest period if they are required to work more than five (5) consecutive hours. In addition, employers must offer employees under sixteen (16) years of age a cumulative rest period of one (1) hour for eight (8) consecutive hours of work. OK Status 40-3-75. While this is not an exhaustive list, here are some signs that a person may have been misclassified: United States Citizenship and Immigration Services Manages the country`s immigration system and decides on applications for immigration benefits. 4400 SW 44th Str. Oklahoma City, OK 73119 (800) 375-5283 (800) 870-3676.

Why does the government care? Well, OESC Executive Director Richard McPherson said this in the announcement of the LETTER of Intent this week: ”Proper classification of workers is essential to maintaining the integrity of our workforce and ensuring a more robust business environment for Oklahoma individuals and businesses.” While agencies believe this is an area of worker abuse, they also see a loss of revenue for themselves. . 224 S Boulder Ave, Room 320 Tulsa, OK 74103 (918) 496-6791 (866) 487-9243 Better Business Bureau Used to report fraudulent business practices. The Oklahoma Department of Labor regulates payroll and labor laws, as well as unique laws regarding licensing requirements. 4001 No. Lincoln Oklahoma City, OK 73105 (405) 521-6100 215 Dean A McGee Avenue Oklahoma City, OK 73102 (405) 231-4158 (866) 487-9243 Office of Disability Concerns Promotes opportunities for people with disabilities to participate in all aspects of life in Oklahoma. 1111 N Lee Ave Oklahoma City, OK 73103 OKC: (405) 521-3756 (v/TDD) Toll-free: 1-800-522-8224 (v/TDD) The Equal Employment Opportunity Commission investigates complaints of discrimination in the workplace when a person believes that discrimination based on race, colour, religion, sex, national origin and age has occurred in the private sector, state and local government….