Report: Misclassification Task Force Wants More Time

Friday, March 19, 2021 | 0

A task force studying misclassification issues wants more time to finalize its recommendations, according to a report by the Louisiana Illuminator.

Luke Morris

Members of the Louisiana Misclassification of Employees Task Force on Wednesday said they don’t feel they will be able to submit proposed legislation by April 12 when the legislative session starts. During a meeting Wednesday, chairman Luke Morris said he would prefer to take more time to craft effective legislation, the Illuminator reports.

Lawmakers created the task force in 2020 to study issues relating to employers misclassifying workers as contractors. The task force has met weekly since January and has drafted two recommendations so far.

The first, according to the Illuminator, would shield employers from being assessed taxes on misclassified workers if the company filed its federal tax returns on time, has always treated workers as contractors and had a reason to do so, such as contractors being commonly used in the industry or the employer following recommendations of a lawyer or accountant.

The other proposal would incentivize employers to classify workers correctly by waiving penalties or payments that would be owed, including past-due withholdings and unemployment taxes.