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ARTICLE · 20 SEPTEMBER 2007

Worker Misclassification – The Next Big Legal Concern?

Sutherland Asbill & Brennan LLP
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Clients frequently ask their counsel: What is the next legal issue that should concern me because of its effect on the way my company conducts business? Worker classification is an answer to that question, and it could soon become a very big issue.

United StatesEmployment and HR

Originally published June 22, 2007

Clients frequently ask their counsel: What is the next legal issue that should concern me because of its effect on the way my company conducts business? Worker classification is an answer to that question, and it could soon become a very big issue.

On June 9, 2007, in an article published in the New York Times by Steven Greenhouse, New York Governor Eliot Spitzer announced his intention to "step up enforcement against companies that illegally misclassify workers as independent contractors" rather than employees. The focus on this issue is not new. Rather, Governor Spitzer is joining what appears to be a growing "worker misclassification" movement. Federal and state agencies are auditing, examining and/or litigating against companies — across a variety of industries — claiming that their classification of workers as independent contractors is erroneous. The scrutiny on the classification issue has even reached congressional levels.

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