Impact of Presidential Election on Employers

Attorney Jonathan (Jon) Nadler currently serves as a partner at the Philadelphia office of Eckert Seamans Cherin and Mellott, LLC, where he concentrates on labor and employment law, including discrimination cases under the Americans with Disabilities Act (ADA). Before beginning his career, Jonathan Nadler earned his JD from the University of Virginia School of Law.

In 2012 Jonathan (Jon) Nadler co-authored a series of articles in Forbes on the impact of the presidential election on employers. The first article noted the shift away from standard full-time jobs to hiring workers on a contract basis. In just the short period between 2005 and 2010, the number of contract workers increased ten-fold, from 4 million to 40 million, which constituted 23% of the workforce. The Department of Labor announced new proposed regulations that increase burdens for companies that use contract labor.

One factor driving the proposed regulations is tax revenues. Classification of workers implicates the collection of payroll taxes, Social Security and Medicare taxes, unemployment and workers’ compensation taxes, as well as others. State governments are concerned with worker classification as well. For example, a 2011 Pennsylvania law imposes civil and criminal penalties for misclassification of independent contractors in the construction industry. Other states are also stepping up enforcement efforts.