Since the emergence of the modern staffing industry following World War II, staffing firms have generally treated contract and temporary workers placed with client organizations as common law employees of the staffing firm. While the intervening decades have ushered in new employment-related concepts, such as “co-employment, and new business models, such as Professional Employer Organizations, the industry’s basic approach to worker classification has not changed. Since workers were being treated as the common law employee of someone (and, as a result, an IRS Form W-2 was being provided), the internal Revenue Service saw little reason for concern. With the enactment of the Affordable Care Act, and in particular that law’s rules governing employer shared responsibility, there is renewed focus on the proper classification of employees. Complying with these rules requires employers to identify “full-time employees.” And the term “employee” for this purpose means a common law employee.
This session will provide an overview of the evolution of the “common law employee” concept leading up to the ACA. It will also focus in particular on the ACA’s new and potentially daunting compliance challenges. In this session, you will learn: