The use of Independent Contractors is the target of US government agencies and Congress

images-3A common practice in the security business is the use of independent contractors.

While that might have been something that was done only on occasion or even consistently without giving much or any thought to the legality of the arrangement, the legal and financial perils of doing it incorrectly today are much greater today than in the past.

The U.S. Department of Labor, now in partnership with the Internal Revenue Service and at least 15 states has launched an all-out assault on employers who misclassify employees as independent contractors.

In short, these initiatives are designed to collect additional taxes from companies using contractors, and prospectively, restrict classification of workers as independent contractors. Two pieces of legislation to codify new regulations – and penalties – were introduced in the U.S. Senate in November: the Payroll Fraud Prevention Act of 2013 (S.1687), and the Fair Playing Field Act of 2013 (S.1706).

Both of these bills will place additional regulatory and reporting burdens on ALL businesses, eliminate decades old “safe harbors,” and increase penalties for violations-even if they are inadvertent. I will be posting more about these new legislative proposals. In the meantime, I am soliciting information about the use of independent contractors in the security industry.

Specifically, are you using independent contractors, and to what extent are you protecting yourself from misclassification penalties?

All comments and information, even anecdotal will be useful.

Moreover, it will remain confidential. If you are uncomfortable posting your comments and stories publicly, Mike invites you to contact him directly at

This post is authoured by a International Security Driver Association member 

The International Security Driver Association (ISDA) serves the Protective Services community. ISDA’s mission is to support an international forum of protective service providers who share knowledge for the purpose of enhancing the profession.

The most common question we at ISDA get asked is, “Is ISDA for Security Drivers and Secure Transportation Providers only?” The answer is a big NO. ISDA is a valuable resource for all practitioners working in the protection profession. Members of ISDA represent all facets and levels of the protective services profession as an example.

This is a collection of books and articles authored by ISDA Members.

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 A collection of Articles authored by ISDA Members

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