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ARTICLE · 12 JANUARY 2010

Proposed Legislation Likely To Classify More Workers As Employees

Sen. John Kerry (D-Mass) has introduced legislation that, if enacted, likely will require businesses to classify more workers as employees rather than as independent contractors, by among other things, repealing Section 530 of the Revenue Act of 1978 - a provision he characterized as a "loophole."

United StatesEmployment and HR

Sen. John Kerry (D-Mass) has introduced legislation that, if enacted, likely will require businesses to classify more workers as employees rather than as independent contractors, by among other things, repealing Section 530 of the Revenue Act of 1978 - a provision he characterized as a "loophole." Senators Durbin, Harkin, Schumer, Brown, Menendez and Kirk are co-sponsoring this legislation.

For more than 30 years, Section 530, which was enacted in response to the financial hardship imposed on small businesses when the IRS reclassified their workers as employees, has provided a "safe harbor" to businesses with a reasonable basis for classifying a worker as an independent contractor.

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