SimplyHR | Employment & Labor Blog 

Job dislocations, mass layoffs, plant closings. News of these events has become more and more prevalent in recent years, leaving many employers grappling with how to handle complicated PR and legal issues in today’s changing job market.

One issue often overlooked by employers is whether they must “WARN” affected employees in such situations. The failure to consider this question or the failure to reach the “right” conclusion can have devastating consequences for an employer – particularly when an affected employee opts to file a class action challenging the employer’s decision.

A recent report released by the Treasury Inspector General For Taxpayer Administration (“TIGTA”) titled “Employers Do Not Always Follow Internal Revenue Service Worker Determination Rulings” serves as a reminder to employers that in addition to the United States Department of Labor’s continuing interest in employer misclassification of employees as independent contractors, the Internal Revenue Service is stepping up enforcement efforts as well.