California Dynamex Decision Demonstrates Need for Harmonization

A recent decision by the Supreme Court of California – adopting a difficult-to-satisfy statutory “ABC” test to determine an individual’s status, as an employee or independent contractor, for purposes of certain “wage orders” issued by California’s Industrial Welfare Commission – demonstrates an urgent need for harmonizing the definition of “employee” for purposes of federal and state laws.

Coalition Submits Letter Urging Support for H.R. 3825

A Coalition letter with 22 signers was submitted today urging relevant House Committee and Subcommittee Chairmen and Ranking Members to support and swiftly consider H.R. 3825, the Harmonization of Coverage Act of 2017. The bill would harmonize the definition of the term “employee” for purposes of federal statutes by amending the Fair Labor Standards Act to adopt a “common law” test for defining the term.

Tax Reform Creates New Benefit for Independent Contractors

The Tax Cuts and Jobs Act created a new tax deduction – of up to 20% – for pass-through entities, which include certain independent contractors. The provision, codified as new Internal Revenue Code section 199A, applies for tax years beginning after December 31, 2017, but before January 1, 2026.