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e-book How New Is the New Employment Contract?: Evidence from North American Pay

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These dimensions of the old and new employment contract are reviewed in more detail in Chapter 3. Past research on the employment contract has emphasized rigidities in the. An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.

How New is the "New Employment Contract"? Evidence from North American Pay Practices

Groshen, K. No cover image. How New is the "New Employment Contract"? Evidence from North American Pay Practices.

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O'Shaughnessy Western Michigan University. This book explores this apparent change in the employment contract from a new perspective. Whereas earlier studies in this area focused on the rigidities in the quantity side of the employment relationship, e. David I.

How New is the “New Employment Contract”? Evidenc… – Relations industrielles – Érudit

O'Shaughnessy, Upjohn Institute for Employment Research, number nec. Corrections All material on this site has been provided by the respective publishers and authors. Type of Relationship : Are there written contracts or employee-type benefits i. Will the relationship continue, and is the work a key aspect of the business?


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The permanency of the relationship. The nature and degree of control by the principal. The amount of initiative, judgment, or foresight in open market competition with others required for the success of the claimed independent contractor.


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  • The degree of independent business organization and operation. The EEOC protects the workplace civil rights of employees, including prohibitions of employment discrimination based on factors such as age, race, gender, or disability. Independent contractors are not covered by the National Labor Relations Act.

    Independent contractors are usually not permitted to enroll in employer-based health and pension plans, allowing employers to save money on company provided benefits. By doing so, employers can ignore labor laws with impunity and exploit low-wage immigrant workers with few legal repercussions.

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    The Extent of Misclassification Accurate data on the extent of employer misclassification is unavailable because employers do not voluntarily report misclassification nor is there a government agency able to conduct comprehensive research. The study found that up to 30 percent of audited firms had employees misclassified as independent contractors.

    Misclassification rates are especially high in construction. In , the Fiscal Policy Institute released a study on misclassified construction workers in New York City, estimating that 50, one in four workers were misclassified as independent contractors or employed by construction companies completely off the books. The IRS estimates as many as 85 percent of all Form SS-8 filers submit the form because they want to contest their treatment as independent contractors. Using an IRS estimate from , the U.

    The remaining losses stemmed from the failure of employers and misclassified workers to pay taxes for Social Security and Medicare and the failure of employers to pay federal unemployment taxes. The loophole was intended to be temporary until rules that were more workable were created but the provision was extended indefinitely in Thus, any employer with a reasonable explanation is relieved from having to pay back taxes and the IRS cannot correct the misclassification in future tax years.

    Under the agreement, the agencies will work together and share information to reduce the misclassification of employees, to reduce the tax gap, and to improve compliance with federal labor laws. This program was first introduced in but was cut in in the face of industry opposition.

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    How new is the "new employment contract"? : evidence from North American pay practices

    These MOUs will enable the DOL to share information and to coordinate enforcement efforts with participating states to ensure that employees receive the protections to which they are entitled under federal and state law. At least 19 states, including New York, Massachusetts, Michigan, New Jersey, and Iowa have created inter-agency task forces to study the magnitude of the problem and coordinate and strengthen enforcement mechanisms. Other states, such as Pennsylvania and Minnesota, have laws that only apply to specific sectors.