On January 18, 2013, Executive Order (EO) 13495, Non Displacement of Qualified Workers under Service Contracts went into effect. If you aren't familiar, this requires federal service contract workers the right of first refusal for employment with the successor contractor, who would otherwise lose their jobs as a result of the competition or expiration of a contract. Who Does This Regulation Apply To? The regulations apply to both prime and subcontractors above the simplified acquisition threshold (currently $150,000) and their solicitations, except those excluded that succeed contracts for the same or similar services at the same location. The regulations also excludes certain types of contracts and employees, as well as giving the head of a contracting department or agency the flexibility to exempt contracts from the regulations if it finds the requirements would not serve the purposes of the EO or would impair the government's ability to procure services economically or efficiently.

You've probably heard the phrase, "If it looks like a duck, swims like a duck, and quacks like a duck, then it probably is a duck.” If you're uncertain on if your next hire should be a 1099 Independent Contractor or a W-2 Employee, read the Federal 20 Factor Test and Common Law in Virginia below.

Augmenting a workforce with independent contractors can be an effective way to rapidly adjust to changing business needs. Not only is this flexible work arrangement beneficial to dynamic organizations, it has become an attractive option for a growing number of talented professionals. You can supplement your team with both independent contractors and W-2 employees, just make sure you follow proper HR compliance.

Recently, the Department of Homeland Security's Immigration and Customs Enforcement unit sent over 650 audit notices to employers for the purpose of auditing I-9 forms. The I-9 form is used by employers to verify the eligibility of employment for employees and is required by law. The failure to properly verify the eligibility of employment can result in large fines, a criminal investigation and potential prosecution. Employers can be fined $1,000 per employee for whom the I-9 form was not properly completed. In an effort to help mitigate your risk, please take some time to consider the following: