This topic presents and provides examples of certain employment policies that many Pennsylvania employers should consider implementing. First and foremost, the employer should determine if the person is a bona fide independent contractor or an employee. Classification as an independent contractor is facing continued and increasing scrutiny by federal and state administrative agencies.
Employee classifications can affect eligibility for benefits, duration of employment, compensation, and employment expectations. Employee classifications therefore should be defined clearly. Classifications should be drafted to avoid any implication that employment is anything other than “at-will.” For instance, employers should not refer to an employee’s status as “full-time permanent” because such a classification may be viewed inconsistent with the concept of “at-will” employment. Remember that the Patient Protection and Affordable Care Act (ACA hereafter) triggers at 30 hours per week, with the exception of certain employees, including but not limited to casual and seasonal employees.
Employers should carefully review the amount of control exercised over those individuals classified as independent contractors to ensure appropriate compliance with federal law. It is advised that employers review the IRS Guidelines in this regard with counsel. The...
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