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New Year, New Legislation: Many Pending Bills Will Have a Significant Impact on Employers

Published:  December 31, 2013

As we usher in the new year, employers should be mindful of pending legislation that has the potential to impact their businesses. Here are some things to keep an eye on.

Independent Contractors
One piece of legislation related to independent contractors potentially offers game-changing good news for employers. There are several bills proposed that would make independent-contractor status more feasible, one of which is universally germane. With the change of one word, this proposed legislation would make a previously insurmountable hurdle less challenging.
The proposed bill would change the ‘and,’ which currently requires satisfying an essentially impossible three-prong test, to an ‘or,’ which would allow categorizing an individual as an independent contractor even though he or she performs services that are within the company’s usual course of business.  While there would still be a presumption of employment, it would be phenomenally easier to establish an independent-contractor relationship.

In more good news for franchisors, another proposed bill would clarify that franchisees are independent contractors and not employees. A third bill would allow freelance writers, editors, proofreaders, artists, and similar persons who work out of their own residence whose work constitutes intellectual property, to which copyright laws apply, to be classified as independent contractors.

Click here to read the full article published by BusinessWest.