Independent Contractor vs Employee Trap

A sneaky little provision in the recently passed Wisconsin Budget Bill (Wisconsin Act 28), assesses a $25,000 penalty for each “independent contractor” that should have been classified as an “employee” in the construction trades.   Check out the new State Statutes, Sec 71.63(3)(d) and 71.65(6), and “nonstatutory” provisions.   The trap is “willful misclassification”, a term which has yet to be defined. 

Apparently abuses in the classification of independent contractors in the construction trades has irked Governor Doyle and the State’s legislature.  A $25,000 penalty for each classification violation is a hefty price for noncompliance!