April 13, 2012

Karen Buesing was quoted in the Tampa Bay Business Journal article, "Judge's Ruling 'Welcome Support for the Business Community.'" The article discusses a March 29 ruling by U.S. District Judge Elizabeth Kovachevich that will have significant impact on companies using the independent contractor business model.The U.S. Department of Labor's "exceedingly aggressive" initiative on the worker misclassification front has resulted in more companies coming under increasing scrutinization for independent contractors they hire and whether they are misclassified employees due additional benefits and overtime wages. Buesing pointed to a memo of understanding between The Internal Revenue Service and the DOL for jointly pursuing examinations of businesses that use the independent contractor model.

In this case, Judge Kovachevich granted summary judgment in favor of Jeffry Knight Inc., a Clearwater cable installation company doing business as Knight Enterprises. She ruled the installers are independent contractors, not employees and that their relationship with the company, is "a typical outsourcing arrangement" and not "a sham" designed to circumvent federal labor laws.

Buesing states, "This decision provides welcome support for the business community and workers who value their independence."