RIMS ‘16 also addressed the employee versus independent contractor debate and potential impending government regulation in a panel in San Diego yesterday. John Zeigler, an attorney with Marshall Dennehey Warner Coleman & Goggin and Stephanie Watts, resolution manager at Gallagher Bassett, held an education session titled “The War on Employee Misclassification: Risks and Costs to Employers and Insurers.” Zeigler and Watts discussed several existing tests used by the IRS and the U.S. Department of Labor to determine independent contractor status, plus next steps. It is estimated that there are 10 million independent contractors working across the nation, about 10 percent of whom are misclassified. On the local level, HB 665, which drastically increases penalties for Louisiana businesses that misclassify is scheduled for floor debate this week.
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