If you use independent contractors you need to beware of making sure that they are truly "independent".
Effective October 1, 2009 Senate Bill 909 will be in acted
According to IWIF, Summer 2009 Producer line
"SB 909 amends the Labor and Employment Article to specifically prohibit employers from falsely classifying employees as independent contractors. Substantial civil penalties against the employer are possible with fines up to $20,000. This bill also creates a presumption in the workers compensation law that an individual in the service of an employer is an employee and not an independent contractor. As a result, the burden will now
be on the employer to prove that a worker is in fact, an independent contractor (free of the employerÙs control, paid other than hourly, not provided tools or materials, etc). This amendment to the law is effective October 1, 2009."
What does this mean to you? It means that if you have employees that you are classifying as independent contractors so that you don't feel that you need to provide them with workman's compensation or take federal and state taxes out of their pay, you are wrong.
Call us to discusss your independent contractors and your need to provide them with insurance. Call today, do not delay. This legislation took affect today!