Independent Contractor Misclassification and Compliance

LEADERSHIP: Michael J. Crumbock, Matthew V. DelDuca and Lisa B. Petkun

Over the last several years, Pepper has handled independent contractor compliance and misclassification matters for dozens of clients in various industries. Our engagements include:


  • reviewing existing independent contractor relationships to evaluate whether individuals are classified properly
  • restructuring and re-documenting independent contractor relationships, including updating and adding state-of-the-art provisions to independent contractor agreements in order to enhance compliance with state and federal independent contractor laws
  • counseling on best practices for clients to create or enhance bona fide independent contractor relationships
  • advising clients that are contemplating independent contractor relationships that would not comply with state and federal tax and labor laws to classify new workers as employees or engage a workplace staffing company to hire its projected employees
  • analyzing employee benefit plan documentation for several clients to determine if the eligibility provisions effectively “carve out” groups of independent contractors if they are re-characterized as common law employees, and determining if the exclusion of contractors impacts nondiscrimination testing requirements under ERISA.

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