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Labor/Employment

May 18, 2010

Independent Contractor Status Raises IRS Eyebrows

Federal and state governments are cracking down on companies that misclassify employees as independent contractors, a long-held practice that strips workers of legal protections and amounts to billions in lost tax revenue.

By Catherine Ho

Daily Journal Staff Writer

LOS ANGELES - They donned DirecTV uniforms, drove cars bearing the company logo and installed equipment at the request of DirecTV supervisors.

But they weren't paid minimum wage or overtime, never got reimbursed for mileage, and had to foot the bill for ladders, hammers and cable connectors.

Saulo Guzman and Ivan Morales, installers working for a DirecTV subcontractor...

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