LEGAL
LEEP Mats are generally constructed of Douglas
Fir Grade 1 lumber. Mats are put through a rigorous
inspection process prior to being assigned a grade
and becoming available for use.
• Pile Hammers - new / refurbished
• Custom Leads - all tubular, pinned style, boom point, fair
leads, fixed / swinging, onshore / offshore
• Accessories - drive caps, cushion material, air line oilers,
air hose, replacement parts
• Sales and rentals of pile driving equipment
• Repair and service of pile driving equipment
Phone: 706-398-1178
Fax: 706-398-1188
www.vulcanhammer.com
Call for Rental Info
LEADING EDGE
EQUIPMENT PARTNERS
(206) 999-1503
USED MATS
• Condition: Very Good
• General Use: – Crane Mats
– Digging Mats
– Outrigger Pads
• Condition: Good
• General Use: – Crane Mats
– Digging Mats
– Outrigger Pads
• Condition: Fair
• General Use: – Access Mats
– Digging Mats
AGRADE
BGRADE
CGRADE
Initiative is several years old, the construction
industry was recently identified as one
of the few industries the DOL will focus
its investigations on. Being identified as a
focused industry is particularly significant
because over the past several years, about
80 percent of investigations wherein the
DOL determined a misclassification violation
occurred impacted companies within
one of the identified focused industries.
It also bears mentioning that in its recent
annual budget request, the DOL asked for
approximately $32 million to hire 300 new
full-time enforcement officers and support
staff.
Employers who have misclassified
independent contractors face potentially
substantial liability. Liability can include
payment related to unpaid overtime wages
and penalties. In 2012, the DOL determined
that a cable installing company misclassified
75 of its installers as independent
contractors that resulted in unpaid
back wages and penalties that totaled
$1,075,000. In summer 2015, the DOL
determined that a construction company
owed 151 misclassified independent
contractors back wages totaling $135,819.
Employers also face liability related to
unpaid payroll taxes, workers’ compensation
and unemployment insurance premiums
(i.e., taxes to federal and state agencies).
Relevant to the potential tax liability,
the DOL has entered into information
sharing agreements with the IRS and state
governmental agencies. Under the agreements,
the DOL may share specific case
information it obtains during an audit or
investigation of a complaint. Thus, if the
DOL determines an employer owes unpaid
back wages and penalties for misclassifying
an independent contractor, the IRS or a
state department of revenue may be knocking
on the employer’s door demanding
their payment next.
On July 15, 2015, David Weil, DOL’s
wage and hour division administrator,
issued a 15-page “administrator’s interpretation”
memorandum emphasizing an
expansive interpretation of the “suffer or
permitted to work” language that defines
employment under in the FLSA. In line
with this assertion, the DOL claims the
vast majority of workers classified as independent
contractors are invalidly classified and
the companies engaging their services are violating
the law. The key analysis, according
to the DOL, is an “economic realities test,”
asking whether a worker is genuinely in
business for him or herself (making him or
her a genuine independent contractor) or is
economically dependent on the company
engaging him or her for work (making him
or her an employee). The DOL also stated
that neither an agreement designating a
worker as an independent contractor nor
the issuance of a Form 1099-MISC is relevant
to the analysis of the worker’s status.
The factors the DOL considers in
determining “economic reality” include:
(A) the extent to which the work performed
is an integral part of the employer’s
business; (B) the worker’s opportunity for
profit or loss depending on his or her
managerial skill; (C) the extent of the relative
investments of the employer and the
worker; (D) whether the work performed
requires special skills and initiative; (E) the
permanency of the relationship; and (F)
the degree of control exercised or retained
by the employer. No single factor is determinative.
A short summary for each of
these factors is below.
•• Is the work an integral part of the
employer’s business? If the worker is
performing work that is integral to
the employer’s business, the worker
is more likely to be an employee.
Notably, work can be integral to
98 | QUARTER 4 2015
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