Publication
Legal Alert – Another Reason Not to Misclassify Employees
As reported in prior Snell & Wilmer publications (See September 2011 Workplace Word, October 2011 Workplace Word and January 9, 2013 Legal Alert), there are numerous reasons why employers need to ensure that they do not treat common law employees as independent contractors. Now, there is another risk for employers who misclassify employees.
As reported in our recent Navigating Health Care Reform Alert, employer shared responsibility penalties (commonly referred to as the “large employer play or pay penalties”) take effect on January 1, 2014 for employers with 50 or more full-time plus full-time equivalent employees. Under those rules, misclassifying employees puts employers at risk of having to pay an Internal Revenue Code Section 4980H subsection (a) or subsection (b) penalty, with respect to its group health plan, and the penalties can be quite significant.
About Snell & Wilmer
Founded in 1938, Snell & Wilmer is a full-service business law firm with more than 500 attorneys practicing in 16 locations throughout the United States and in Mexico, including Los Angeles, Orange County and San Diego, California; Phoenix and Tucson, Arizona; Denver, Colorado; Washington, D.C.; Boise, Idaho; Las Vegas and Reno, Nevada; Albuquerque, New Mexico; Portland, Oregon; Dallas, Texas; Salt Lake City, Utah; Seattle, Washington; and Los Cabos, Mexico. The firm represents clients ranging from large, publicly traded corporations to small businesses, individuals and entrepreneurs. For more information, visit swlaw.com.
