The Master Builders of Iowa has a long history in educating members on the use of independent contractors and has maintained the position that the IRS definition best fits the needs of the construction industry. CLICK HERE for more information on the IRS definition.
However, there has been heightened scrutiny on the independent contractor relationship by governmental regulators. Investigators have found that when employees are misclassified as independent contractors, they may be excluded from coverage under key laws designed to protect workers and may not have access to employer-provided health insurance coverage and pension plans. In addition, government regulators will argue that misclassified employees can affect the administration of many federal and state programs, such as payment of taxes and payments into state workers’ compensation and unemployment insurance programs.
In an effort to provide information related to worker misclassification, the links below will take you to state agencies that oversee independent contractor relationships.