As the two main stakeholders in the corporate structure around the world find new ways to fashion a relationship that best represents the interests of both parties, this movement away from the traditional employer/employee relationship is also attracting the attention of regulators whose interests vary from altruistic to self serving in the form of lost tax revenue. This period of change has spawned an area of emerging risk that companies need to pay close attention to as it can have serious consequences for them in terms of the legal interpretation of their contracts for service or labour, as well as the resulting effects this can have on their Employers’ and Public Liability insurance covers which may not adequately contemplate a new contractual relationship by the company with a party for services unless previously declared and agreed. Remember, (at law ) the company is deemed to be the one proposing the insurance to the insurer, so always err on the side of caution and talk to your professional insurance broker first.
The U.S. Department of Labor has issued a blog post with new guidance on classifying workers as employees or independent contractors under the federal Fair Labor Standards Act (FSLA), an issue that has attracted renewed attention in the on-demand economy.
Misclassification of employees as independent contractors is increasing, “in part reflecting larger restructuring of business organizations,” wrote David Weil, the administrator of the DOL’s Wage and Hour Division, in his blog post entitled, “The Application of the Fair Labor Standards Act’s ‘Suffer or Permit’ Standard in the Identification of Employees Who Are Misclassified as Independent Contractors.”
Excerpt taken from http://www.insurancejournal.com
James Peirce is a Director of Lynch Insurance Brokers Ltd. with 23 years experience in the field and specializes in commercial insurance broking, placement, claims negotiations and program structure. He is active in the broking field as Account Executive for several of Barbados’ largest companies, and is also the Director of Business Development. Apart from holding a Bachelors Degree in Marketing, he also holds a Diploma in Insurance from the Chartered Insurance Institute of the UK.
James can be contacted by telephone at 246 230-2684 or by email at email@example.com
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