Article by Michelle Capezza Featured in BenefitsLink Retirement Plans NewsletterBenefitsLink September 9, 2015
Michelle Capezza, a Member of the Firm in the Employee Benefits and Health Care and Life Sciences practices, in the firm’s New York office, authored “The Misclassified Worker and Employee Benefit Plan Considerations,” which was featured in the popular retirement plans newsletter, BenefitsLink.
Following is an excerpt:
Improper exclusion of workers from participation in employee benefit plans governed by ERISA can jeopardize a plan’s tax-qualified status as determined under the Code and can also provide these workers with a cause of action under ERISA. Retirement plans can lose their tax-qualified status for a variety of reasons, including as a result of “demographic failures” (where the plan does not pass coverage and nondiscrimination tests) or “operational failures” (where an employer impermissibly excludes a common law employee from plan participation believing that the worker is an independent contractor). Worker misclassification can also expose employers to penalties under the Patient Protection and Affordable Care Act for failure to properly account for the number of its employees to determine applicable large employer status as well as its failure to offer any health coverage or to offer adequate or affordable coverage to full-time employees (and their dependents).
Ms. Capezza’s article originally appeared on Technology Employment Law, an Epstein Becker Green blog.