U.S. Sen. Sherrod Brown (D-OH), together with Sens. Tom Harkin (D-IA) and Robert Casey Jr. (D-PA), introduced the Payroll Fraud Protection Act of 2013 (S. 1687), which is designed to crack down on the fraud engaged in by businesses when classifying employees. Many businesses improperly classify employees as independent contractors as a way to cut expenses, including employee benefits and taxes. Often, these classifications are improper due to the nature of the relationship between the individuals and the business. If passed, this new legislation would hold businesses financially liable for such mistakes.
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New legislation regarding classification of independent contractors
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