DON’T EVEN THINK ABOUT DOING IT WRONG….
Litigation under the FLSA continues to spread like a cold in a daycare. To further add to our concerns, Congress is entertaining yet another way for employers to find themselves in trouble for wage-hour violations. While the penalties under the FLSA for the misclassification of an employee as an independent contractor can quickly become expensive with backpay, liquidated damages and attorneys’ fees, the proposed “Employee Misclassification Prevention Act (EMPA) may add further salt to the wound. In its present form, EMPA would impose penalties of $1,100 for an initial misclassification, and take that penalty to $5,000 for persistent or willful violators. These penalties are on top of those allowed under the FLSA for any unpaid overtime. EMPA also proposes to add further civil penalties for recordkeeping violations and create a presumption that an employer’s inadequate records the finding of an employment relationship rather than independent contractor status.
To keep up with the status of this proposed new law: S. 3254: Employee Misclassification Prevention Act (GovTrack.us).
Chris Parker, Member
cparker@millermartin.com | 404-962-6456
Miller & Martin PLLC
Atlanta, GA
About Chris Parker
Chris Parker's practice focuses on the representation and counseling of companies in matters pertaining to the workplace and the protection of their intellectual property and trade secrets. In addition to serving as an advocate for clients, Mr. Parker is also trained as a mediator and frequently serves as a third-party neutral.
Read more about Chris Parker
About Jimmy Daniel
Jimmy Daniel provides counseling to businesses of all sizes related to the employment relationship. He assists in the drafting of employment agreements, policies, and handbooks, as well as provides guidance related to compliance with federal, state, and local legislation such as the Fair Labor Standards Act and the Family and Medical Leave Act.
Read more about Jimmy Daniel
About Larry Bridgesmith
While serving in an Of Counsel relationship with the firm, Mr. Bridgesmith also serves as the Executive Director at the Institute for Conflict Resolution at Lipscomb University and as an officer and principal in Strategic Resolutions Group, LLC. In these roles, Mr. Bridgesmith brings over 30 years of legal experience in dispute resolution and innovative workplace strategies to clients, students and business entities alike.
Read more about Larry Bridgesmith