For an Initial Consultation, call (917) 371-8000

Steven Mitchell
Sack

The Employee’s Lawyer®

Welcome to The Law Offices of Steven Mitchell Sack

Enforcing the workplace rights of thousands of employees, executives and sales reps for more than 44 years.

steven mitchell sack

Significant Employee versus Independent Contractor Developments

All companies must now be familiar with the Labor Department’s new rules defining independent contractor versus employee status for several reasons.  In addition to working for principals as an independent worker, many rep firms hire employees to assist in their businesses.  When are workers employees? When are they contractors?  These are differences in definitions that have huge legal implications.

In light of recent cases involving Uber drivers, and a push to recover more revenue (e.g., last year the Labor Department forced companies to pay tens of millions of dollars in back wages to more than 100,000 workers in the janitorial, temporary help, food services, day care, and hotel industries), the Labor Department recently issued new guidelines intended to help companies answer that increasingly complicated question.  The shift is to classify workers as employees, so EORA employers must be more careful because they owe a higher duty to employees than they do to independent contractors.  Additionally, contractors aren’t eligible for overtime pay, unemployment insurance or workers’ compensation. They typically pay all their Social Security taxes compared to employees, who split their cost with employers.

The new standard is broader than guidelines previously followed by many states and the IRS.  Now, a worker who is “economically dependent” on the employer should be treated as an employee; by contrast, a worker must be in business for themselves to be an independent contractor.  No longer is the focus primarily on how much control the employer has over the worker.

Thus, businesses who utilize independent sales personnel or contractors who supply administrative, supervisory, or managerial duties should speak to their accountants about whether they should modify the arrangement to make them employees.  Paying workers as employees could possibly minimize legal and tax exposure.  If both parties still desire independent status, preparing a simple document reflecting this could help the parties clearly understand the legal relationship.

If you need guidance on the legal consequences of employee versus independent contractor status, contact an experienced employment attorney who will help ensure that your rights are protected.  Call Steven Mitchell Sack at (917) 371-8000.

    If you have experienced any of the below, fill out the form to the right to set up your FREE PHONE CONSULTATION:























    What’s Happening at The Law Offices of Steven Mitchell Sack

    new york lawyer
    new york lawyer awards
    new york lawyer blog

    Our Reviews and Client Feedback

    I dealt with steven as an adversary. I found him to be one of the most respectful,, knowledgeable, and effective attorneys i have encountered in my 40 years of practicing law.
    Steven isn't just a great lawyer, he is a great person. He was always available to take my calls, and to give good advice. I would highly recommend him.
    "I am an attorney, and I can say that Mr sack did an outstanding job in negotiating a severance agreement. He picked up the phone and made a call, something simple, timely and effective that no other attorney would do. Mr. Sack was effective, to the point, he always followed up, and he got me a better result than any other attorney would have.

    He exceeded expectations, and I am very grateful that I hired him.

    I would recommend him to any employee involved in a sensitive situation where diplomatic negotiation and communication is needed. He kept me very well informed about the progress of my case and obtained a very satisfactory negotiated formal written severance agreement, which is one of his specialties."
    Response from the owner:Thank you very much for your review. Please keep us in mind if you ever have any other employment law matters you need assistance with.
    The best contract lawyer out there. Responsive compassionate and got results results fast. Unbelievable contract lawyer best in NYC.
    Response from the owner:Thanks for your review. Please feel free to call back if you ever have any need of representation in any future employment law matters.
    I had the pleasure of working with Steven on my separation agreement, and I couldn’t be more grateful for his expertise and dedication. From the very beginning, he provided clear, strategic guidance, ensuring that my rights were fully protected. He took the time to answer all my questions, kept me informed at every step, and negotiated effectively on my behalf. His attention to detail and deep understanding of employment law helped me secure an exceptional outcome. I highly recommend Steven!
    Response from the owner:Thank you for your review. We are glad you were satisfied with your representation, and hope you contact us if you ever have need of representation again.
    I had a great experience working with Steven Sack recently relating to a recent job separation from my former employer. He is straight to the point, very knowledgeable, and easy to work with. I absolutely recommend his services to anyone that needs an employment attorney.
    Response from the owner:Thanks for your review. If you ever need any future counsel on employment law matters, please feel free to contact us again.
    js_loader

    Testimonials

    Read More

    Skip to content