Fair Playing Field Act of 2012

By Thomas McKinney

The United States Senate has introduced the Fair Playing Field Act of 2012. This legislation would prevent employers from being able to use the federal “safe harbor” provision which permits employers to classify employees as independent contractors for tax purposes regardless of the fact that the employer may be required to withhold appropriate taxes and pay employment taxes for the independent contractor. The current “safe harbor” provision protects employers’ classification of employees if the classification was based on a published ruling or judicial precedent, a practice in the industry, or a past IRS audit. The legislation would increase the penalties to employers for misclassification and require them to inform the independent contractors of their rights and ability to request a determination from the IRS.

Please contact our NJ Employment Lawyers if you have any questions regarding the Fair Playing Field Act of 2012.

About the Author
Tom McKinney is an experienced NJ Employment Lawyer in all major areas of labor and employment law, including discrimination, harassment, overtime violations, wage and hour claims, sexual harassment, wrongful discharge, Title VII, ADA, ADEA, FMLA, LAD, FLSA, and all other employment law claims. Tom is admitted to practice in the States of New Jersey and New York, United States District Court for the Eastern District of New York, Southern District of New York, District of New Jersey, and United States Court of Appeals for the Third Circuit. Prior to forming the firm, Tom practiced at Gibbons P.C. in Newark, NJ. If you have any questions regarding this article, contact Tom here today.