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^{Dateline: October 2, 2009, CFICF E-Newsletter}

Be sure to read the latest CFICF e-newsletter, “Special Bulletin: Maryland Legislation Threatens all Independent Contractors” (full copy is below). If you’re not already signed up to receive these communications, then sign up today.

Dear Independent Contractor,

This is a special bulletin to notify you of a new development in Maryland, the latest in a series of state-by-state actions that threaten independent contracting… and a warning sign for all independent contractors across the country.

Just yesterday, the Maryland Department of Labor, Licensing, and Regulation (DLLR) put into effect the Workplace Fraud Act of 2009. The act is just another example of the growing list of political agendas that are hostile to independent contracting. And it’s also another example of how state-level government is trying to take away the rights of independent contractors to help shore up their budget deficits.

The following are some of the unsettling parts of the bill that could potentially put thousands of small business owners and independent contractors out of work. Maryland’s independent contractors will have significantly less opportunity to find work and many small businesses could be forced to close because…

• The new act will complicate employer compliance, bury businesses under paperwork and impose steep fines paid to the State.
• Small businesses, which often don’t have a lot of employee manpower, would have to spend countless hours working on a complicated record-keeping system for their independent contractors’ worked hours (and further complicated by the fact that many independent contractors are paid a flat fee).
• Independent contractors would have to adhere to nearly impossible guidelines including proving their work is “outside of the usual course of business” of the company using their services, and that they are free from that company’s direction.

This Maryland legislation continues a recent trend that is hostile to independent contracting and independent contractors (all 10 million of us). These laws, for example, simply make an assumption that people who call themselves independent contractors are really misclassified employees. The laws also typically assume you’re an employee unless someone proves otherwise. Neither of these assumptions is true – for decades, we’ve had laws that classify workers as independent contractors and, for the most part, they’ve worked just fine and been properly enforced.

Laws like these that attempt to force businesses to convert their independent contractors to employees risk significant loss of work and other disruptions to our economy, and to the millions of independent contractor families. With our economy on the brink of recovery, this is no time to be shutting off opportunities for Americans to find work.

To read more on this damaging act, we encourage you to visit our website and share with us your thoughts and comments.

Sincerely,
David Dunnigan
Executive Director
Coalition for Independent Contractor Freedom