Legal Developments

Lisman & Leckerling, P.C. — Legal Developments

Employee or Independent Contractor?

U.S. Senator Sherrod Brown (D-OH) recently introduced legislation entitled the Employee Misclassification Prevention Act (“EMPA”) which aims to prevent workers from being misclassified as independent contractors. Both the House and the Senate are reportedly behind the bill, so it will likely become law.

Among other consequences, the misclassification of employees could lead to federal criminal penalties. Employers are being cautioned to review their employment practices. An overview of the legislation can be read here.

Credit Card Legislation

Vermont is the first state to pass legislation targeting the fees charged by credit card companies on credit and debit card purchases. Card companies typically collect from retailers a percentage of each transaction in which a credit or debit card is used. The new law allows Vermont retailers to set a minimum amount of up to $10 for credit/debit card purchases. The law also allows retailers to offer discounts for cash, check or brand of card. Previously, such practices were barred by the agreements between retailers and the card companies. The full text of the new law is available here.