Freelancers, found to be common law employees, entitled to participate in employee plans

Article Abstract:

The US Court of Appeals for the Ninth Circuit ruled in Vizcaino v. Microsoft Corp. that workers that the IRS characterized as common law employees were entitled to participate in the company's 401(k) and stock purchase plans. Microsoft argued that the workers had signed agreement that they were to be treated as independent contactors, were treated differently than employees and were paid through the accounts payable department. The Court found that since Microsoft had misclassified the workers as independent contractors the contractual agreements were no longer applicable.

Self-employed persons, Self employed persons, Independent contractors, Payroll tax

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Fourth Circuit holds that leased employee not entitled to plan benefits

Article Abstract:

The US Court of Appeals for the Fourth Circuit ruled in Clark v. E.I. DuPont de Nemours & Co. that the plaintiff was not entitled to be covered under Dupont's employee benefit plans, despite being a common-law employee, because he was excluded by the terms of the plans. The plaintiff worked for companies that leased employees to DuPont and sought benefits under a number of DuPont plans after his employment ended. The Court found that the terms of such plans could exclude some workers from coverage as long as the exclusions were not based on length of service or age.

Employment Placement Agencies, Employee Benefits & Services, Employee Leasing Svcs, Help supply services, Human resource management, Employment services, Professional employer organizations, Contract labor

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Court holds that common law employees are entitled to participate in employer's pension plans, regardless of plan language

Article Abstract:

The US District Court in Colorado ruled in Bronk v. Mountain States Telephone & Telegraph, Inc. that temporary and leased employees were entitled to participate in pension plans if they were found to be common law employees. The Court found the workers were not entitled to participate in welfare plans. Regarding the pension plan, the Court disregarded plan language limiting participation to regular employees and apparently did not consider regulations that allow plans to establish qualification conditions.

Pension Fund Coverage & Benefits, Pensions, Pension funds, Qualified benefit plans, Temporary employees

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