Business Tax Quarterly Suggested Readings - Spring 2019

Worker Misclassification Content

Distributors’ Misclassification Claims Settled for $9 Million
Employers don’t have a single rule to follow when it comes to worker classification. The U.S. Department of Labor maintains one test, while federal courts have devised their own. Employers also must consider state and local laws carefully and ensure sure they classify workers according to the tests relevant courts will use.

Companies Using Independent Contractors Score Big Following NLRB Ruling
However, while the recent National Labor Relations Board decision has restored the traditional common law factors for evaluating independent contractor status under the NLRA, there is not a bright-line test to determine if a worker is an independent contractor or employee under any standard.

Shifting Worker Status May Imperil Profit, Experts Say
In major markets such as New York City, regulators have imposed protections that cut at many of the cost-related benefits of using independent contractors. Any threat to the ride-share business in New York City is critical for these companies, including one eyeing an initial public offering. But the bigger threat is the precedent these new rules may set for other jurisdictions.

Personal Goodwill in C-Corporation Asset Sale Content

Strategy Provides Opportunities for Buyers and Sellers
In instances in which goodwill is a significant asset, the parties’ ability to structure the sale in part as a sale by the shareholder of personal goodwill and in part as a sale by the corporation of its assets may provide desired results to both parties.

Why 2019 Is Shaping Up to be a Better Year for M&A Than 2018
Rick Climan, Hogan Lovells partner, explains why he thinks 2019 will be a better year for M&A activity than 2018. The growth isn’t limited to one sector, said Climan, who recently shared his assessment with “Bloomberg Markets: The Close.”