IC Issue Attracts National Attention - Congressional Proposal Changes 20 point Ruling Process Down to Three

WI] introduced The

Independent Contractor Classification Act as HR 1525, bringing the issue of Independent Contractors [IC] before the US Congress. One thing is for sure, no matter what happens, this action is certain to alter the way Congress and the IRS views the issue and our overall operations.

After speaking with the office for about 20 minutes and reviewing 18 pages of material they faxed to me, this is what we have learned: The Congressman hopes to "eliminate a burdensome and unworkable 20-factor common law criteria that employers now use to classify workers. In its place, the bill would provide an easy-to-understand three factor test." Under the proposal, a person would be classified an individual contractor if: The employer does not control the manner in which the individual completes assigned tasks; The individual may solicit and undertake other business opportunities; The individual encounters entrepreneurial risk.

Obviously, the concepts and language contained in the above paragraph, will tremendously affect the industry and your individual business, so it's imperative that you get involved.

\n The Act, cosponsored by Rep. Amo Houghton (R-NY), would vastly simplify and reform a long-standing regulation that causes confusion among employers resulting in workers losing benefits or workplace protections," the Congressman said in a press release. "The bipartisan support of this bill can not be underestimated. This issue has been a bone of contention in Congress for over two decades."

At the current time, there are 17 bipartisan cosponsors: New York's Houghton, Boehlert, King, Quinn and Forbes; Pennsylvania's English & Coyne; California's Stark and Matsui and the following Johnson (CT), Mr. Levin (MI), Mr. Weller (IL), Mr. Foley (FL), Mr. McDermott (WA), Lewish (GA), Barrett (WI).

According to the Congressman, "Because of the ambiguous guidelines, many business have mis-classified workers, who have lost benefits and workplace protections like health insurance and worker's compensation, and that hurts employers who are put at an unfair disadvantage with competitors who mis-classify their workers.

The bill's introduction was brought to our attention by Marla Green (CA - Fantasy Topless) who is also working with us on the IC issue here in CA. This bill is the perfect opportunity for us to organize and fight back.

We want to represent the nation's club owners in the discussion of the issue and will work with legal leaders to ensure that our voice is heard and reflected in specific amendments. - Mike Ross