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Brown Introduces Employee Misclassification Prevention Act in Senate

May 3, 2010

Our Orange County Employment Lawyers have been following the recent announcement of the Employee Misclassification Prevention Act, that was introduced into the Senate recently by Senator Sherrod Brown, (D-OH), after the companion legislation was introduced into the House of Representatives by California Representative Lynn Woolsey (D-CA).

The act would amend the Fair Labor Standards Act from 1938 and require that employers keep accurate records of "non-employees" or "independent contractors" who work for payment. This act will penalize employers who attempt to incorrectly classify "employees" as "non-employees."

According to Senator Brown, tens of thousands of employers misclassify their workers as independent contractors, making employees ineligible for benefits like wage and hour rights, overtime, workers' compensation and unemployment insurance. Employees who are misclassified are also not protected by health and safety laws, or anti-discrimination laws.

This act would reportedly prevent workers from being incorrectly classified as independent contractors and would give them the lawful protection and employee benefits that they have legally earned. The Employee Misclassification Prevention Act would reportedly help ensure that employees have access to health and safety protections in the workplace, fair labor standards, and unemployment and workers' compensation benefits.

In his press release, Senator Brown claimed that in this difficult economic time, misclassified workers are being taken advantage of by employers, and are being denied worker safeguards--losing lawful benefits that are rightfully earned. Brown also highlighted the current problem happening to law-abiding employers--they are placed at an immediate disadvantage by competitors who cut corners and cheat workers by misclassifying employees.

Senator Tom Harkin (D-IA), Chairman of the Senate Health, Education, Labor and Pensions Committee, claimed that this legislation will address the important issue of employee misclassification, and will give workers the necessary information that they need to protect their rights, as well as level the playing field for employers who treat their employees according to California law.

In cities throughout Orange County, California, contact Howard Law, PC today.

Heads Up: Bill Brings New Heat on Employee Classifications, HR Morning, May 3, 2010

Sen. Brown Joins Colleague in Announcing Bill to Ensure that Workers Receive Protection and Benefits They Have Earned, Sherrod Brown Press Release, April 22, 2010

Related Web Resources:

California Department of Industrial Relations (DIR): The Division of Labor Standards Enforcement