WHO IS YOUR EMPLOYEE?: INDEPENDENT CONTRACTORS AND OTHER CONTINGENT WORKERS. Dean L. Silverberg * Epstein Becker & Green, P.C

Transcription

1 Ep B k G WHOI SYOURE MPL OYE E? : I d p d C d O h C g W k D L. S v b g, E q. E p B k &G, P. C P kav u N wy k, N wy k T : F x : d v b b g w. m T h d u m h b p v d df f m p u p y d d d d h u d b u d u g d v. P u y u y w h yf p f u u d f d w d h p p b w h m y mp d d b g y u dy u mp y. A yad v g E p B k &G, P. C.

2 WHO IS YOUR EMPLOYEE?: INDEPENDENT CONTRACTORS AND OTHER CONTINGENT WORKERS D L. Svbg * Ep Bk & G, P.C Idu Vu gvm g dy qug h mpym u f wk vy yp f duy, udg u, f, p-dm d h g wk. N h b vkd, fm by mg u d phy. If mpy fud hv mfd mpy dpd h g wk, h h xpu by b qu ub. Th by fm h vu fd d b, mpym d x w. 1 Th w ud mg h, h Nw Yk S Lb Lw pv g h pym f wg, vm d umpym mp, d h fd up h F Lb Sdd A ( FLSA ); h Nw Yk S Wk Cmp d Dby Bf Lw, whh pvd f h pym f md d y wh mpy jud h jb; h Nw Yk Hum Rgh Lw ( NYHRL ) d fd up, T VII f h Cv Rgh A f 1964, mdd ( T VII ), whh p g mpym dm; h Empy Rm Im Suy A f 1974 ( ERISA ), whh gv dm f mpy bf p; h I Rvu Cd (h Cd ), whh mp p f fd x; h N Lb R A ( NLRA ), gug gh f wk d u ud fd w; h Ag Dm Empym A ( ADEA ), whh pb mpym dm h b f g; d h Am wh Db A ( ADA ), whh p dbd dvdu fm dm. A w b dud, bu m f h w muh 100% f h mu wd p d, h mpy ppy fy wk. I dd h f xpu h fm h mf f wk, gf gdg mmuy fm u. F xmp, ud T VII, h ADEA, h ADA d h NYHRL, dpd gy pd. Thf, m f mu bh h u mpy d f m. Ah xmp wh pd up w. Th ph d h h mpy umy b, by vu f h mpym hp, f wg * D L. Svbg p h Nw Yk ff f Ep Bk & G, P.C., pg b d mpym w bh h pv d pub. H w gdud fm h S Uvy f Nw Yk Bghm (B.A., wh g h, 1974), udd w Bky Lw Sh (J.D., 1977) d w gdud wh h fm h Nw Yk Uvy Sh f Lw (LL.M., 1986) wh pz b w. M. Svbg vy vvd mpym d wkp g, v bgg g, wg d hu ud, d hum u mgm. 1 Wh h m fu umb f Nw Yk S w, my h jud hv gu u ud whh mpy by my. FIRM: v2 1

3 mmd g h p ppy by mpy g wh h p f h mpym. Thf, wh mpy dy hd b umy f h wg f h mpy, hy y hd b f h wg mmd by h wk dmd dpd. Fuhm, f mpy jud h jb, h h u h mpy dvduy, du wk mp xuvy u. A dpd, hwv. Th ky vdg g by y vv uddg whh dvdu gup f wk qufy mpy dpd. Hwv, h mp k. Th dd f g h u f wk gup f wk vy, d wk fd by gy mpy my b fd dpd by h gy. A w b dud d bw, Nw Yk g d h I Rvu Sv ( IRS ) gy ppy h gh--, d my fd g, wh h xp f h IRS, ppy h h m hybd. Th gh-- fu fu dm f whh h puv mpy h pp p f h wk mpym. Th m fu whh h wk my dpd h p f h h vhd d fm h puv mpy. Th hybd mb h fu d f dpd qu. Addy, xpdd mm w gy h y mdfd v f h hybd h b ud um f gd mpym dm. Th p mph h gh-- f bu k u m f. Ud y f h dd, hwv, h guy g gy bg wh h pp h m, f, wk mpy. Th h guy uh qu h mpy-y pud hm h y. I dd h f dvdu dpd, my mp hv h p uzd h v f dvdu mpy mpy, wh f pd huy d d v h vu bf pvdd mpy gu mpy. Oh mp hv uzd mp ffg g h pvd wkf, bu d d h wk mpy. I h v y w fm f ffg gy h ppd wh m d m fquy h fm f h Pf Empy Ogz ( PEO ). I d d f kd, xpd wk h b pvdd h v p, h PEO hv zd h hy mu ff v d mpv y d bf pkg h mpy. Th PEO hf, hv mbd b f, wh y dd mpy f h PEO d wh f v gu d mpy fg bf, udg pd m ff d pp h vu mpy bf pgm ffd by h PEO. (I m, mp m y by mpy bg, h PEO wud h f h mpy f h v p y w mpy, d hv h wk pvd v h fm mpy). By, h PEO gy gz f h j -mpy f h wk d bg f b pb f, mg h hg, x whhdg bg, h pym f uy d mpym x, wk mp d FIRM: v2 2

4 umpym u pmum. Th PEO gy um pby f um, hg, g, vu d dp d dhg f h wk pd h v p. Hwv, h PEO d h v p gz h h wk pd - my b dd mpy f bh h PEO d h v p y. T h x h h v p x d d v h v pvdd by h wk, w h d f mm w mpy, h v p y w b dd j -mpy wh h PEO. By, h PEO d h v p w jy um mpy dg g wh h u mpy bg d k. Th p f h gm w h k m h pv xpu d by by h u f vu dmf pv. A. Th S Cmm Lw Sdd I. Th S d Fd Sdd Nw Yk S u d dmv g, uh h Nw Yk S Dpm f Lb d Wk Cmp Bd, whh f mmum wg, umpym mp, wk mp d dby w, hv ppd d mm w u dm whh dvdu mpy dpd. 2 Cmm w pp h whh hv dvpd hughu h u f hy du jud dm. Thy judg-md w, uy m. Th IRS h dpd h mm w dd by fug pmy h fu gh by h puv mpy. Ahugh h IRS pph gh-- d, d k 20 h mpym hp. 3 Ud h mm w dd, h dm f mpy dpd u qu f f, kg d p f h hp 2 Th Umpym Iu Dv f h Nw Yk S Dpm f Lb, f xmp, h ud py m umg h f w d dmg mpy/dpd u f pup f dmg h umpym u w. A py f h py hd f yu f fwg h pg f h m. (S Appdx A.) 3 S,.g., Y v. P Sh, I. N. 01 Cv WL (S.D.N.Y. Ap 7, 2004) (hdg h mpu h wh wkd ud h u f h mpy upv, wkd gh hu p dy, fv dy p wk, d w pd wky w mpy bd d f h f ud by h IRS). A f h IRS 20 hd f yu f fwg h pg f h m. (S Appdx B.) N h h IRS ud F Tg Gud Wk Cf (Empy v. Idpd C) (PJC Pubhg, LLC, 1997), whh du,, h v mp h mgh hv pu f um. I dd, wb, h IRS dvd h g h f h dm vd f h dg f d dpd puv mpy h v wk: bhv, f d yp f hp. S Idpd C (Sf-Empyd) Empy?, vwd updd Augu 15, 2012, hp:// Empyd)--Empy%3F. FIRM: v2 3

5 bw h p. 4 Wh f dpv f y gv gy, h fwg pp qu hv b md. Wh h x f xd by h puv mpy v h m d m f pdug h v pdu? A u whh h mpy h h gh d wh w b d d wh d hw w b d. 5 Wh h mhd f pym? If h wk h mpy py d v hk vy w wk, h m dv f mpy u h f h h vd pym h d f h dy wkd. Wh fuh h qupm, m d upp? If h wk bg h h w, h my d dpd u. Hwv, f h mpy pvd m, h wk my b mpy. D h mpy hv h gh dhg h wk? If h wk h m wk y m whu f f bg md, f xmp, h h m ky b dpd. Wh h hu f wk? If h wk, h my d dpd u. Wh h v u f h wk? Th m h quy fu whh h wk mpy, pm, uu m. I g whh h h f wk ugg h h wk ggd p g up fm h f h puv mpy, h wk f 4 S I N, 38 A.D.3d 1082, 832 N.Y.S.2d 320 (3d Dp 2007) (Rug h mpy xd uff v v d f pdu bh mpy-mpy hp wh h mpy ud d hugh dvm d f d qud hm mp pp fm, pvdd hm wh g d p f h, mpd qu whh hd b m vd m, h mm d pdu p d hdd d vwd h um mp, pvdd hm wh d, dk p, mbx d ph, d ugd hm wk hf); I Sfd, 37 A.D.3d 928, 829 N.Y.S.2d 738 (3d Dp 2007) (hdg h p wh dud w g bhf f w mpy w d d hw w mpy f mpy h h dpd ; mpy xd uff dg f v h p wk bh mpym hp). 5 S M v. M & Fmg, 267 A.D. 29, 31-32, 44 N.Y.S.2d 672, 674 (3d Dp 1943) ( wh mpy my pb wh h b d, bu hw h b d wh h d, h p mpyd dpd )( md), ff d, 293 N.Y. 844 (1944). FIRM: v2 4

6 g p f h puv mpy bu. If p, h wk my m ky b dpd. 6 A d, hugh f dpv, h b uggd h, x, h puv mpy v h m d mhd f pdug wk hud b gv m wgh h h f dmg mpy dpd u. 7 B. Th Fd Sdd 1. Em R T Sm fd u d g, h h h IRS, pg d dmg vg h x f h FLSA, hv dd vy f fuy v dm whh dvdu mpy dpd. Php fdg h mm w gh-- vy v, m u hv dvd wh mmy fd h m, whh fu hw my dpd h dvdu h bu h h h v. 8 T h x h dvdu hghy dpd h bu h h v, d dv ub p f h h m fm, h m gy ugg mpy, h h dpd, u. Add f h my b dd ud h m ud h fwg: Wh h k qud h pu up? I h wk g p f h bu f h puv mpy? Wh h f h p? 6 S,.g., I Bd, 257 A.D.2d 809, 684 N.Y.S.2d 653 (3d Dp 1999) (hdg h pub u w dpd h h mpy f fg mpy); R v. Ch S. W Mm. Hp., 80 A.D.2d 608, 436 N.Y.S.2d 47 (2d Dp 1981) (fdg h qum f p-mpym phy xm d hg mpym u). 7 S I Ky, 28 A.D.3d 1044, 814 N.Y.S.2d 340, 341 (3d Dp 2006) (ug h mpym hp xd bw f d dvy dv wh dv w gv f dv wh pu ggph z d w qud dv pdu wh b m m dy, b p' gu up dvy, d p f h m f dvy d dv' pym w xpy dd up hm bg "p d w-md"); I Cm f Cm, 248 A.D.2d 773, 669 N.Y.S.2d 701 (3d Dp 1998) (hdg p p b dpd ); 26 C.F.R ()-1(b) (1998) (mpy wh ubj h w d f h mpy y wh h b d bu hw h b d ). 8 S,.g., B v. Bmghm, 332 U.S. 126 (1947) (fdg h bd mmb w mpy f bd d, f d h, f pup f S Suy); Bk v. Sup C, I., 840 F.2d 1054 (2d C. 1988) (hdg h u wh wkd f hh bu ggd fg mpy hh p hp d ug hm w mpy f pup f FLSA). FIRM: v2 5

7 D h puv mpy py uy x d pvd fg bf? If, f xmp, h puv mpy p dy g d h wk d m pumbg, h wk mpy dg h f. Hwv, f h m mpy qu pumb ff p h qupm guy, h m pumb my b mpy. 2. Th Cmb T S h fd u hv dpd hybd, mbg h m wh h gh-- d h mm w pp f gy. F xmp, FLSA, fd pp u dfd d ud x f dm whh wk w mpy dpd. Th f dvd fm h gh- dd g gy pp, d hy f xm f h fwg: Wh x wh dg f v h m whh h wk b pfmd? Wh h py ppuy f pf dg h mg k f h wk? Wh h md wh yp f vm m qupm? D h v wk qu p k? Wh h dg f pm f h wkg hp? I h wk v dd g p f h puv mpy bu? 9 9 Shuz v. Cp I S., I., 466 F.3d 298 (4h C. 2006) (hdg h uy wk hd pvd uy f p w mpy vd by FLSA, dpd wh p d uy fm xd y mp v hw wk dd h jb, hugh w uy py; wk hd ppuy f pf dpd mg k, hy w pd p hf; h fm d p uppd y qupm f wk; hugh m uy du qud p k, h dd ; h p mpyd m wk f v y d pfd h wk wh wud y wh hm v h g m; d uy fm' y fu w pvd uy f h p, d wk w hd pfy pfm h k). FIRM: v2 6

8 3. Th Expdd Cmm Lw Agy T E, fd u xmg h mpym hp mpym wu fd ud ERISA, T VII, h ADEA, d h ADA dpd xpdd mm w gy dguh bw mpy d dpd. Th, m h hybd fd up, d h hp bw h mpy d h wk d k u bh mm w f d dd f pg h wk m u. I h x f ERISA, h Ud S Supm Cu ummzd h pv : I dmg whh hd py mpy ud h g mm w f gy, w d h hg py gh h m d m by whh h pdu mphd. Amg h h f v h quy h k qud; h u f h um d ; h f h wk; h du f h hp bw h p; whh h hg py h h gh g dd pj h hd py; h x f h hd py d v wh d hw g wk; h mhd f pym; h hd py hg d pyg ; whh h wk p f h gu bu f h hg py; whh h hg py bu; h pv f mpy bf; d h x m f h hd py. 10 Cu hv dy ppd h mm w gy wh dg h mpym hp wh h mg f T VII, h ADEA d h ADA. S Sm v. Ou Ldy f Vy Hp., 514 F.3d 217 (2d C. 2008) (ppyg h mm w gy dm f wk w mpy dpd wh h mg f T VII); Sp v. Cw Chg Cp., 102 F.3d 625 (1 C. 1996) (ug h mm w gy d fdg h hg m w dpd wh h x f h ADEA); 11 A v. Sw Ry Dv. C., 522 F. Supp. 2d 623 (S.D.N.Y. 2007) (ppyg h mm w gy dm f wk w mpy dpd ud h ADA d h Nw Yk S Hum Rgh Lw) Nwd Mu. I. C. v. Dd, 503 U.S. 318, 323 (1992) (hdg h h xpdd mm w gy b ppd dmg whh wk mpy dpd wh h mg f ERISA) (qug Cmmuy f Cv N-V v. Rd, 490 U.S. 730, (1989)). 11 S EEOC v. Jh & Hgg, I., 91 F.3d 1529 (2d C. 1996) (ppyg mm w gy d fdg h p d mpy wh h mg f h ADEA). 12 S Jh v. Cy f S, 151 F.3d 564 (6h C. 1998) (ug mm w gy ADA m d fdg h wk wh d wh y p h y pub b w dpd ); J v. Am Fdy Gup, Ld., 298 Fd. Appx. 467, 472 (C.A.6 (Mh.), 2008) (ug h mm w gy dm f wk wh wkd hm w mpy dpd ud h ADA); Dyk v. Dpuy, I., 140 F.3d 31 (1 C. 1998) (uzg h mm w gy f pup f m ud h ADA d ERISA FIRM: v2 7

9 I ppyg h mu-fd, m u hv dfd h gh-- f h pmu f wh dmg whh dvdu mpy dpd. F xmp, v hugh h Sd Cu Cu f App hd Fk v. By, I. 13 h h qu f whh dvdu mpy dpd wh h mg f h ADEA mu b dmd d wh mm w gy pp, h u w fu bv h p, h db dff bw h hybd d h mm w gy muh [b]h p h g mph h hg py gh h m d m by whh h wk mphd d d -xhuv f f p f fxb y f h y f h um. 14 II. Tx Lby Expu A. Fd Tx Nmy, y x d p mu b d wh h y fm h m h mpym x u fd. Hwv, f u fd, h m ud guby b md y m. Cu hv ud h mhz f mpy dpd ug Fm 1099 bg fd d f Fm W-2 d Fm 941 d h u f m pd bu h Fm 1099 u w h pp u. Cquy, y my b p. Wh h IRS ufuy f wk mpy, h mpy my bm b f p dd h m x whhdg, FICA (S Suy) d FUTA (fd umpym) x h w v whhd pd. If h fdg h mpy uy mfd wk, h mpy my b hd b f p. Thu, h qu f mf my dpd whh h w dgd f h u. If mpy y mpy dpd du u mf, h mpy py f fg ddu d whhd m x qu 1.5% f wg pd h mpy. Th mpy d mu qu 20% f h mpy h f FICA x h hud hv b ddud d whhd, d qud py h f FICA x h w md. Fuhm, f, dug h pd h h mpy uy d h mpy dpd, h mpy fd p h mp h wk by fg Fm 1099-MISC, h h py f fu whhd m x bm 3% f h wk d fdg h pv w dpd ) F.2d 86 (2d C. 1993) F.2d 90 (mph ddd); Axd v. Ruh N. Sh Md. C., 101 F.3d 487, (7h C. 1996) (dfyg h mpy v h m f wk pfm h pmy fu ); Lg v. Dug Em, LLC, 311 Fd. Appx. 403 (C.A.2 (N.Y.), 2009) (m). FIRM: v2 8

10 g (d f 1.5%), d 40% f h FICA mu h hud hv b whhd (d f 20%). Th pf fu--whhd p d ppy h mpy f h mpy y dgd h whhdg qum, f h mpy ddu m x bu f ddu FICA x. I dd h mpy bg b f h f FICA x, d f h m x whhd h mpy g d FICA x, h Cd mp h mu h vb fd h-m. Th Cd mp py qu 100% f h x du f wfu fu u f mpym x. Th 100% py my b d g y h IRS dm my b pb p ff. A pb p ff ud b y ff, hhd, d mpy wh hd h pby whhd d m x, bu fd d, wh hd uhy v h pym f wg d h p bg. Th m h Hum Ru Mg Aug Mg ud pby b dmd pb. A mpy wh hd b b f fyg wk dpd my b b vd bh f d mp f mpym x p. Th b-b dd m f y f h f hb x. Th f hb : (1) h x f p IRS ud f h mpy, wh h w mpym x hg wh p wk m p h wk wh u bg qud; (2) g-dg duy p f g dpd wk m h wk wh u bg qud; d (3) IRS ug u d dg wh wk h m um h wk u, wh h w dm h uh wk dpd. Th hhd f h pp f h f hb : (1) h mpy mu hv d h wk mpy f y pd, d my ud wk mpy; d (2) h ppp x pg fm mu hv b fd wh p h wk. Th f hb ppy x y f 1978; hwv, h 1996 x h uby d h wy h f hb b ppd. Addy, h IRS h ud w pdu f xm wh p h f hb. I hud b d h f f y wk fm dpd mpy y my u mpym x by, bu my pbm f mpy wh p p d bf p. 15 Ev f h f du h mpy by bf fm f h f hb, h f hb ppy y mpym x. Thu, h my b u wh p p d bf p. B. Nw Yk Tx I dd fd x qu, bh Nw Yk S d Nw Yk Cy mp p f fu ppy whhd d m x. I bh, h mpy 15 S Vz v. Mf Cp., 120 F.3d 1006 (9h C. 1997). FIRM: v2 9

11 b f y mu h hud hv b whhd d md. Th mpy w, hwv, b dd wh y x pd by h mpy. Ev f h mpy py h fu x by, f Nw Yk S x pup, h mpy wh fd whhd d m w b ubj p d. Th py w dpd whh h fu w wfu. Th py f wfu fu qu 5% f h x p mh up mxmum f 25%, pu. If h fdg h h w fudu, h dd py f up $1,000. Cm p pvdd. III. S Suy Expu A. Umpym Iu Tx Empy qud py umpym u x pmum bhf f h mpy h quy m f x bu. S umpym x pym md h S f mpy bd up h fmu bhd by h S (.., h mpy xp g mupd by h mpy y up h f $8,500 p um), mpy b f fu m umpym u x pmum bhf f wk pvuy fd dpd, d wh hv b fd mpy. Wh h bk pmum pmpy pd fwg ud by h Dpm f Lb, h Cmm f Lb gy d y f p, bu h mpy f h upd pmum h f 12% p um. Hwv, h Nw Yk S Lb Lw pvd f v d m p f pym g h y, d pvd m g p ff dvduy, h v h h bk pmum pd. B. Wk Cmp d Dby Pym I Nw Yk, mpy qud m pmum gu b h S Iu Fud ( h ppp ) u wk mp d dby u vg f mpy wkf. Pp f f h pup f wk mp d dby, bu f wk fd mpy w b jud d u, h h wud b pvd fm dg by h wk mp xuvy u. If h S w du ud f mpy bk d d d fd h h w mf f dpd, h S ud mk m g h mpy f v d upd wk mp d dby u pmum. I dd, wh dpd fd mpy d mk m, h mpy my b qud py d bf h mpy. Wh mpy f pvd h pym f dby pmum, w b ubj py x f um qu -hf f p um f h wky py f h pd f uh fu d fuh um x f $ Th u mpmg gu pvd h, whv mpy f mpy wh y qum f h Dby Bf Lw v y f pv, h h f, FIRM: v2 10

12 m, h p pbd by h w h b mpd. 16 Fuhm, f h mpy wfuy mk f m p, f d m f f h pup f bg y bf pym fug dm gdg bf, h h mpy guy f mdm. Th Wk Cmp Lw p vkd wh h fu u mp. Fu u h pym f mp f fv mpy wh wv mh pd u mdm, puhb by f f $1,000, bu m h $5,000. Fu u h pym f mp f m h fv mpy wh wv mh pd u E fy, puhb by f f $5,000, bu m h $50, Suh w fuh pvd h, wh h mpy p, h pd, y, d u h b b f fu u h pym f mp. Thu, h p ff wud b b f h f d hgd wh h mdm fy. Fuhm, h b fud h mpy fd pvd f pym f mp, my mp dd py f $2,000 f h 10-dy pd f mp, um x f w m h f mp f py f h pd f uh fu. 18 Wh h mpy p, h pd, y d u h b b f h py. If y p wfuy mk f m p f h pup f bg y bf pym ud h Wk Cmp Lw, h h p wh mk h wfuy f m w b guy f mdm. C. Rpu I um, mpy f m xpu v d m wh pym f umpym, wk mp d dby pmum. A h S Dpm f Lb m d vg wh d h mpy my bg ud h Lb Lw, b fud bd fh, uky m puu m. IV. Mmum-Wg Expu Th FLSA gu mmum dd f wg d wkg hu f mpy wh mpy h gg mm pdu gd f mm. A uh, h FLSA p m mpy h Ud S. Hwv, h FLSA d pmp g. Th m h f g fh h h p ffdd by h FLSA. O My 25, 2007, Pd Buh gd pdg b h, mg h hg, mdd h FLSA h fd mmum wg h p: 16 N.Y. Cmp. Cd R. & Rg.. 12, N.Y. Wk Cmp. Lw 52 (MKy 2006 d Supp. 2008). 18 Id. FIRM: v2 11

13 $5.85 p hu ffv Juy 24, 2007; $6.55 p hu ffv Juy 24, 2008; d $7.25 p hu ffv Juy 24, Nw Yk mmum wg $7.25 p hu. V hzd C B mdm. I Nw Yk, h uy gud f h pym f vm mp pvd h gy mpy mu b pd d -hf m h b huy f wk x f 40 hu p wk. Hwv, f h mpy wk p hf d/ pd f hu xdg 10 hu p dy, h h mpy my, dpdg h um, b gb v hu py h mmum huy dd h mmum wg. Thf, f wk w mppy fd, h mpy wud b b h f h vm pvuy wkd by h fd mpy. A mpy mu b pd vm u h mpy p d du f wh y f h xmp (.g., xuv, dmv d pf) vm pvdd h FLSA u. Th f b py my b y mu dmd ppp bv h uy mmum. Fy, ud h Nw Yk Lb Lw, mpy mu fy wk, h m f h h f, f h f py d f h gu dgd pydy. V. Agy d Lgv A Mf f mpy dpd h bm h bu u ud h Obm dm. Fd d g d gu hv bm gy v yg mb mpy mf. Fm U.S. Dpm f Lb Sy, Hd L. S, d IRS Cmm, Dug M. Shum, gd Mmdum f Uddg ( MOU ) 2011, g gm bw h g d bhg j v du h fquy f mpy mf d mpv mp wh fd b w. 19 A umb f hv gd MOU wh h Dpm f Lb Wg d Hu Dv. Wh p fw f h, h Empy Bf Suy Adm, Oup Sfy d Hh Adm, Off f Fd C Cmp Pgm, d h Off f h S g h MOU. Eh MOU xpy fh h h php w d wh h pf d muu g f pvdg, u, d y-- mp fm mpy, mpy, d h khd, d hg u d hg fm by dug dd fm d hg fm wh ppb w S Mmdum f Uddg bw h I Rvu Sv d h U.S. Dpm f Lb, dd Spmb 19, S..g., Php Agm bw h U.S. Dpm f Lb, Wg d Hu Dv d Cf Lb d Wkf Dvpm Agy, dd Dmb 21, FIRM: v2 12

14 My hv d k f hgd wh mbg wk mf. F xmp, 2007 h Nw Yk S J Efm Tk F Empy Mf ( JETF ) w d d h vg d fm f mpy mf qum g, udg h S Dpm f Lb, Wk' Cmp Bd, Ay G, d Dpm f Tx d F. Pvuy, fm ff w dvdd mg vu g, d v w hd wh h v g. I 2011, JETF dfd v 19,600 f mpy mf, dvd v $412 m upd wg d d v $14.5 m umpym u x. 21 I dd h vy by d fd g, d fd gu hv k pv mpy mf. S hv pdd mpy mf u by g g md dfg h m dpd, g p f wfu mf d mpmg m g pg qum. F xmp, 2011 Cf d w whh phb h wfu mf f dvdu dpd, d phb mpy fm hgg f mfd dvdu f m h mpy my qud puh, uh qupm, p, v,. 22 Th Nw Yk S gu d h Nw Yk S Cu Iduy F Py A 2010 g bub pump h u wk mpy. Ud h A, dvdu my b fd dpd f h dvdu () f fm d d pfmg h jb, bh ud d f; () pfmg v ud f h uu u f bu f h mpy; () d ggd dpdy bhd d, up, bu h m h v hy pfm. 23 I h fv y, h hv b umu mf b dud bh h U.S. S d h U.S. Hu f Rpv. Ahugh f h b h b pd, hy pf h mpy mf pm u ffg mpy d wk. I 2007, h Idpd C Pp Cf A ( ICPC ) w dud by h-s Obm d w f h f f kd. Th w wud hv, mg h hg, wd h IRS dvp p f wk k f vu f h pp f. I 2008, h Empy Mf Pv A ( EMPA ) w dud by bh h S d Hu f Rpv. EMPA ugh pfy md h F Lb Sdd A by qug mpy kp d f -mpy wh pfm b v f mu, d by pvdg p py f dub qudd dmg d f f up $10, f h v f mpy wh pdy d wfuy mfy mpy -mpy. 24 EMPA w dud g by bh h S d Hu f Rpv 2010 d by h Hu f 21 S Au Rp f h J Efm Tk F Empy Mf, dd Fbuy 1, C. Lb Cd d Nw Yk Cu F Py A, N.Y. Lb Lw S S (2008); H.R (2008). FIRM: v2 13

15 Rpv VI. Cu Th fu d y h u f wk gup f wk xp mpy h pby f mdu g by. Ay ubqu fu dju h u f dpd, kw h hy hud b mpy, pmpy d mkdy h p by, bh m d v, f v ud h x, mpy bf, wg d hu, wk mp, dby d umpym u w. Addy, h g h hg f u ppd, h m ky wfu my b fud. Wh hgg h u my xp mpy p u ud T VII, h ADEA, h ADA d h NYHRL, y dvdu mppy fd wud b b k p h dvduy hugh h gvm ud h u, bhg h h u u. I uh, hf, mpy pud kp h dvdu mppy fd. 25 S S (2010); H.R (2010); H.R (2011). FIRM: v2 14

16 Appdx A 17-FACTOR ANALYSIS NEW YORK STATE DEPARTMENT OF LABOR UNEMPLOYMENT INSURANCE DIVISION INDEPENDENT CONTRACTORS Idpd xudd fm vg ud h Umpym Iu Lw. Th p wh uy bu f hmv d hd hmv vb h g pub pfm v. A p dpd y wh f fm d d h pfm f v. Wh h w d df dpd, u d hv hd h h mm w f m d v mu b ppd mkg dm f whh v dd by dvdu h py f mpy dpd. Ud h mm w, f g h hp bw h w p mu b k d dm f h py g f h v x, h h gh x, upv, d v h p pfmg h v. Th m dg by h mpy f dpd u, v f pd by h dvdu, uv. A w gm d pud xm f h f dm whh h pfm f h v ubj upv, d. Hwv, pv vg h gh f my bh h x f mpym hp, v hugh h mpy w h dvdu gf fdm f. If h um dm h h x f, h gh x, uh upv, d, mpy-mpy hp x. I mm f h v pfmd fu-m, p-m, u b. Gy, ff f p mpy, d b dd dpd wh pfmg h h uu mgm v, v f whh h p w fmd. Wh h g f, gup f f, h uv ddg f mpy-mpy hp x, h u hv hd h fwg b m f h m gf d f mpym hp: 1. C v h dvdu v by uh m qug fu-m v, pug h hu f wk, qug d mg, d qug pm f b fm wk. 2. Rqug h dvdu mpy wh u wh, wh d hw d h jb. FIRM: v2 15

17 3. D upv v h v pfmd. 4. Pvdg f, qupm,, upp f h pfm f h v. 5. Sg h f py f v pfmd. 6. Pvdg mp h fm f y, huy f py, dwg u g fuu mm wh qum f pym f ud mm. 7. Pvdg mbum w f bu v xp. 8. Pvdg fg bf. 9. Pvdg g, puy f d g qud. 10. Ebhm f m wh whh h dvdu mu p:, my, m m. 11. Rqug v b dd py. 12. Rqug w p. 13. Sv pfmd g p f h bu, puy wh pfmd ug b. 14. Fuhg bu d, h m f df f h dvdu pv f h mpy. 15. Rg h dvdu fm pfmg v f mpv bu. 16. Rv f h gh m h v h. 17. Nu f v: ukd b uuy upvd, dd b ubj upv. Cvy, m f h f h u hv fud b gf bhg h x f dpd hp ud: 1. Th dvdu bhd dpd bu ffg v h pub. A dpd bu uuy mkd by uh m md dvg, mm ph g, bu d, bu y d bhd, yg bu u, mg w bhm. 2. Th dvdu h gf vm f. Suh m hd d p p dd gf. 3. Aump f h k f pf pvdg v. FIRM: v2 16

18 4. Fdm bh w hu f wk d hdu w v. 5. N qud d mg g. N w p. 6. Fdm pvd v uy f h bu, mpv mpv. Th fwg p mpy by w, v hugh h um ud whh hy wk my m h mm w f mpy-mpy hp: 1. A g mm-dv ggd dbug m, vgb, fu, bky pdu; bvg (h h mk); udy dy-g v. 2. A vg y p wh wk fu-m g d f mhd f upp f u h puh bu p. Th v f p bh gup vd f hy wk ug hp wh mpy, uby f uh wk py pfmd, d h p pfmg h ub vm h f ud h pfm f h v xp h f f p. Empy wh y qu g h u f dvdu pfmg v f hm hud w h Lby d Dm S, fuhg mp d f h hp, d qu dm. Fu p h g d py h x du h g f p, h ump h hy dpd, my u dd m d wh hy dmd b mpy. FIRM: v2 17

19 Appdx B 20-FACTOR ANALYSIS A Su Gm Of Twy Qu Th IRS h mpd f 20 f h vw mkg dm gdg mm w mpy u. Sm h h dud, f g; h dm bd h y f h um. Th IRS 20 f fw: 1. Iu. A mpy qud mpy wh u wh, wh d hw wk. Ev f u gv, h f p f h mpy h h gh gv u; 2. Tg. A mpy d pfm v pu m. Idpd uuy u h w mhd d v g fm h puh f h v; 3. Ig. A mpy v gd h bu p bu h v mp h u u f h bu. Th hw h h mpy ubj d d ; 4. Sv Rdd Py. A mpy d v py, whh hw h h mpy d h mhd w h u. Fuhm, f bu h v b pfmd py, h f d v h wk; 5. Hg A. A mpy wk f mpy wh h, upv d py. A dpd h, upv d py ud h qu hm h pvd m d b d b pb y f h u; 6. Cug Rhp. A mpy h ug hp wh mpy. A ug hp my x wh wk pfmd fquy ug hugh gu v; 7. S Hu f Wk. A mpy h hu f wk bhd by mpy. A dpd h m f h h w m; 8. Fu-Tm Wk Rqud. A mpy my qud wk fu-m f mpy. A dpd wk wh d f whm h h h; 9. Wk D Pm. A mpy wk h pm f mpy wk u dgd by mpy; FIRM: v2

20 10. Od Squ. A mpy mu pfm v h d qu bhd by mpy. Th hw h h mpy ubj d d ; 11. Rp. A mpy ubm p mpy. Th hw h h mpy mu u h mpy f h h ; 12. Pym. A mpy pd by h hu, wk mh. A dpd pd by h jb gh mm; 13. Exp. A mpy bu d v xp pd by mpy. Th hw h h mpy ubj gu d ; 14. T d M. A mpy fuhd gf, m d h qupm by mpy; 15. Ivm. A dpd h gf vm h f h h u pfmg v f m ; 16. Pf L. A dpd mk pf uff ; 17. Nxuvy. A dpd gv h h v w m ud p fm h m m; 18. Sv Offd G Pub. A dpd mk h h v vb h g pub; 19. Rgh Tm. A mpy b fd by mpy. A dpd my b fd, g h h pdu u h m h pf f h ; d 20. Rgh Qu. A mpy qu h h jb y m whu ug y by. A dpd uuy g mp pf jb, d pb f fy mp gy bgd mk gd f h h fu mp h gm. FIRM: v2 19

21 WHO IS YOUR EMPLOYEE?: INDEPENDENT CONTRACTORS AND OTHER CONTINGENT WORKERS 2013 D L. Svbg, Eq. Ep Bk & G, P.C. 250 Pk Avu Nw Yk, Nw Yk T: Em: dvbg@bgw.m FIRM: v2