On April 22, 2010, Ohio Senator Sherrod Brown introduced the new Employee Misclassification Protection Act (EMPA). The EMPA was set forth to prevent and penalize employers from misclassifying employees as independent contractors. Some employers have been knowingly classifying some employees as independent contractors to avoid federal and state payroll taxes. This prevents their employees from receiving the benefits and protection they have earned. This also causes the state to lose money as well. The Act mandates all employers to provide written notice to those employees they have identified as independent contractors. The Act ensures that all employers must keep accurate records classifying each employee accordingly. Penalties for noncompliance range as much as $1,100 per day per employee and up to $5,000 per employee per day for repeated violations, and liquidated damages.

Those who have been improperly classified as independent contractors may bring a lawsuit against their employer for compensation of the benefits and protection they would have obtained if classified as employees. Contact our attorneys at Loberg Stevens LLC to schedule a consultation.