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12 Rutgers J. L. & Pub. Pol'y 138 (2014-2015)
The Misclassification of Independent Contractors: The Fifty-Four Billion Dollar Problem

handle is hein.journals/rutjulp12 and id is 153 raw text is: Rutgers Journal of Law & Public Policy THE MISCLASSIFICATION OF INDEPENDENT CONTRACTORS: THE FIFTY-FOUR BILLION DOLLAR PROBLEM David Bauer* I. INTRODUCTION Employers' are required to categorize their workers as either employees2 or independent contractors.3 On average, most independent contractors are properly classified, but the problem is that many employers misclassify their workers in order to save on labor costs and avoid liability under various employment Acts.4 A * LL.M. (in taxation) 2013, New York University School of Law; J.D. magna cum laude 2012, St. Thomas University School of Law; B.S. 2oo9, Florida International University. 1 BLACK's LAW DICTIONARY 604 (9th ed. 2009). An employer is defined as [a] person who controls and directs a worker under an express or implied contract of hire and who pays the worker's salary or wages. Id. 2 Id. at 602. An employee is defined as [a] person who works in the service of another person (the employer) under an express or implied contract of hire, under which the employer has the right to control the details of work performance. Id. 3 Id. at 839. Independent contractor is defined as: One who is entrusted to undertake a specific project but who is left free to do the assigned work and to choose the method for accomplishing it. It does not matter whether the work is done for pay or gratuitously. Unlike an employee, an independent contractor who commits a wrong while carrying out the work does not create liability for the one who did the hiring. Id. 4 See Obama Targets Employers that Misclassify Workers as Independent Contractors, COMPENSATION.BLR.COM (Feb. 2, 2010), http://compensation.blr. com/Compensation-news/Compensation/Independent-Contractors/Obama- t138 Spring 2015 Vol 12:2

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