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Crack down on worker misclassification reaches Maryland

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In lieu of all that’s been going on with worker misclassification in our growing “Gig economy”. About 30 states have partnered with the US Department of Labour (DOL) to crack down on employers who knowingly classify employees as independent contractors. Maryland employers will now face stiff penalties for misrepresenting an employee’s status. Thus, civil penalties, action from joint state agencies (workers compensation, insurance administration and the comptroller) and new regulations are coming into place.

This is how some of these changes will be implemented in Maryland according to Donna M. Glover of lexology.com,“If an employer knowingly misclassifies workers, the employer will be subject to a civil penalty of up to $5,000 per employee. For subsequent knowing violations, the DLLR [Maryland Department of Labor, Licensing and Regulation] may assess double penalties, that is, up to $10,000 per employee who is misclassified. Additionally, the Act provides that any individual who knowingly advises an employer to violate the Act will be subject to a civil penalty of up to $20,000. The Act defines “knowingly” as having “actual knowledge, deliberate ignorance, or reckless disregard for the truth.”

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  1. […] About 29 other states are also concerned about the future of the gig economy and are getting […]

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