The Spectrum on Independent Contractor Misclassification

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Reactive or Proactive…Wisconsin’s and Connecticut taking both sides of the spectrum with Independent Contractors

In the  recent article from Staffing Industry Analysts, both Wisconsin and Connecticut have weighed in on the misclassification issue surrounding Independent Contractors.  As you will see in the piece from Wisconsin, I feel that The Wisconsin Labor and Industry Review Commission (LIRC) is creatively interpreting the, already blurry laws, surrounding contractor classification to meet their needs of increased revenue generation.  To state that “The court found that payment per-drop was more akin to payment on a piecework basis than payment on a per-job basis.” is purely semantics and a convenient interpretation of the laws to meet their needs. 
 
Connecticut who’s General Assembly introduced a bill in January that seeks to clarify the definition of independent contractor in the state. The bill, S.B. 678, would change the definition of independent contractor to specifically "exclude any individual that is paid hourly, whose tools are provided by the person paying the worker, or who otherwise acts at the specific direction of the payor."

Why don’t states like Wisconsin take a proactive approach like Connecticut and make it more clear on how employers can grow the workforce without having to look over their shoulders to the reactive legislation that is waiting to pounce on them?
 
We see this as another clear sign that outsourcing the use of independent contractors is not only a good business practice, but quickly becoming a necessary risk mitigation practice.  Not outsourcing is a kin to not having business insurance.  It’s great, as long as nothing happens.