Campaign 101: Employment Classifications

Making the Right Choice When Designating Campaign Staff

Who to hire and when to hire them? These are some of the most important decisions made by a campaign. As leaders, the decision to bring on staff is a pivotal one that sets the tone for the campaign's success. Amidst the eagerness to assemble a winning team, it's crucial to consider the specific distinctions between contractor and employee status. It’s not merely a bureaucratic formality; It’s a decision that holds both legal and operational implications for the campaign.

In this blog post, we'll cover everything you need to know in order to make informed choices when classifying new members of the team.

What is Classification and Why Does It Matter?

Employee classification refers to the categorization of individuals working for an organization or business as either employees or independent contractors. This classification is crucial because it determines how these individuals are treated in terms of taxation, benefits, labor rights, and legal responsibilities. The distinction between employees and independent contractors is not arbitrary; it is based on specific criteria set by government agencies such as the Internal Revenue Service (IRS) in the United States and similar entities in other countries.

Beyond legal considerations, candidates for office are community leaders and as such, should strive to prioritize ethical employment practices. Following the law isn't just about avoiding penalties; it's about creating an environment where each team member is treated fairly and with respect. As leaders, choosing the right classification is not only a legal necessity but also a commitment to fostering a healthy and productive work environment for the entire campaign team.

Here are key reasons why employee classification matters:

Taxation: The tax obligations for employees and independent contractors differ. Employers are typically responsible for withholding income taxes, Social Security, and Medicare taxes for employees, whereas independent contractors are responsible for handling their own tax obligations.
Employee Benefits: Employees are often entitled to benefits such as health insurance, retirement plans, and paid leave. Independent contractors, being self-employed, are responsible for securing their own benefits.
Labor Laws: Employment classification determines which labor laws apply to individuals. Employees are entitled to certain rights and protections under labor laws, such as minimum wage, overtime pay, and workplace safety regulations. Independent contractors are generally not covered by these laws to the same extent.
Liability: Employers are typically liable for the actions of their employees during the course of employment. Independent contractors, on the other hand, are often considered separate entities, and the client or hiring party may have limited liability for their actions.
Worker Protections: Employees are often covered by various worker protection laws, including unemployment insurance and workers' compensation. Independent contractors are responsible for securing their own insurance and protections.
Control and Independence: The level of control an organization has over the work of an individual is a key factor in classification. Employees usually work under more direct supervision, while independent contractors have greater independence in how they perform their work.
Legal Compliance: Misclassifying employees as independent contractors, or vice versa, can lead to legal consequences, including fines and penalties. Adhering to proper classification ensures compliance with employment laws.

Factors to Consider when Classifying Campaign Staff:

Ownership of Time

One key factor in determining employment status is the degree of control over an individual's time. If the campaign dictates specific working hours and closely monitors attendance, the staff is more likely to be considered employees. On the other hand, contractors typically have more autonomy over their schedules, owning their time and deciding when and where they complete tasks.

Job Guidance vs. Deliverables

Another crucial aspect is the nature of instruction provided to campaign staff. Employees often receive detailed guidance on how to perform their tasks, while contractors are typically focused on delivering specific results. Consider asking: Are we telling our staff how to do their job, or are we primarily concerned with the outcomes associated with their role?

Liability for Mistakes

Mistakes are inevitable, but the question of liability becomes crucial when determining employment status. If the campaign assumes responsibility for errors made by staff, they are more likely to be classified as employees. Conversely, independent contractors are generally accountable for their mistakes, reducing the campaign's liability.

When Misclassification Happens

Misclassifying a campaign employee can have significant legal and financial consequences for the campaign organization. The consequences may vary based on the laws and regulations of the jurisdiction, but common repercussions include:

Legal Penalties and Fines: Government agencies, such as the Internal Revenue Service (IRS) in the United States, may impose penalties and fines for misclassifying employees. These penalties can be substantial and may increase if the misclassification is deemed intentional.
Back Taxes and Unpaid Benefits: Misclassifying employees may lead to the failure to withhold and pay employment taxes, such as Social Security and Medicare taxes. In addition, misclassified employees may have been denied certain benefits and protections they were entitled to, leading to potential legal claims for back pay and benefits.
Labor Law Violations: Misclassification may result in violations of labor laws, including minimum wage and overtime pay requirements. This can lead to legal claims by employees seeking unpaid wages and damages.
Workers' Compensation and Insurance Issues: Misclassified employees may not have been covered by workers' compensation insurance or other insurance policies held by the campaign. In the event of an injury or other workplace-related issue, the campaign may face legal challenges and financial liabilities.

To correct misclassification, campaigns can take several steps:

Review and Audit: Conduct a thorough review and audit of the working relationships within the campaign. Assess the nature of the work, the level of control exercised over individuals, and other factors that determine employment status.
Seek Legal Advice: Consult with legal professionals who specialize in employment law or tax law to ensure a proper understanding of the regulations and guidelines. Legal advice can help in determining the correct classification and the best course of action for correction.
Adjust Employment Arrangements: If misclassification is identified, campaigns may need to adjust the employment arrangements of affected individuals. This may involve reclassifying individuals as employees or independent contractors based on their actual job duties and the nature of the working relationship.
Address Financial Obligations: Address any outstanding financial obligations resulting from misclassification. This may include paying back taxes, resolving benefit issues, and rectifying any other financial discrepancies.
Implement Corrective Measures: Implement measures to ensure proper classification moving forward. This may involve updating contracts, job descriptions, and policies to align with the correct employment status.
Training and Education: Provide training and education to campaign managers and staff involved in hiring and classification decisions. Ensure that everyone involved understands the criteria for proper employee classification.

Employers should be proactive in addressing cases of misclassification. Identifying a misclassification and submitting the paperwork required to correct the issue is always the best course of action. By taking these corrective measures, campaigns can mitigate the legal, financial and reputational risks associated with misclassification.

For Misclassified Employees

If a campaign employee believes they have been misclassified by their employer, it's important to take specific steps to address the issue. Misclassification can have significant implications for the employee's rights, benefits, and legal protections. Here's what a campaign employee should do if they are concerned about misclassification:

Understand Employment Laws: While it is the job of the employer to understand and ensure compliance with employment laws, employees should always take time to learn employment laws as it relates to their unique situation. At the end of the day, you are your own best advocate!
Gather Information: Collect documentation related to your employment, including contracts, job descriptions, and any communication regarding your classification. Note specific details about your work arrangement, such as the level of control exerted by the employer, the nature of job guidance received, and any indications of employee-like responsibilities.
Communicate with Your Employer: Talk to your campaign manager or whoever is in charge of making these decisions. Campaigns are often navigating many of these situations for the first time and are likely to make mistakes along the way. Have a conversation with your employer or the appropriate person within the campaign about your concerns regarding misclassification.
Consult with Legal Professionals: Seek advice from an employment attorney or legal professional experienced in labor law. They can provide guidance on your rights and the best course of action.
Document Everything: Keep a record of all communications with your employer regarding the misclassification issue. Document any changes in your work arrangement or duties that may support your claim.
File a Complaint with Regulatory Agencies: If discussions with your employer do not lead to resolution, consider filing a complaint with relevant regulatory agencies. In the United States, this may involve contacting the Department of Labor or the state labor board.
Explore Legal Remedies: If necessary, explore legal remedies through the court system. An employment attorney can guide you through the process of filing a lawsuit to address the misclassification.
Connect with Co-Workers: Discuss the issue with your co-workers to determine if others are facing similar concerns. A collective approach may strengthen your case and lead to a more comprehensive resolution.
Consider Union Assistance: If your workplace is unionized, reach out to the union for support and guidance. Union representatives can advocate for your rights and may have established procedures for addressing misclassification issues.

Remember that each situation is unique, and the appropriate course of action may vary based on the specific circumstances.

Conclusion

The decision to classify campaign staff as employees or independent contractors is an important one with implications that extend far beyond administrative convenience. Accurate classification, in alignment with IRS and state agency guidelines, is essential. Misclassification can result in consequences, including legal penalties, financial liabilities, and reputational damage. Recognizing the nuances of time ownership, job guidance, liability, and financial responsibilities for contractors underscores the importance of making informed decisions. As campaign leaders, prioritizing both the letter and spirit of the law in staff classification not only safeguards the campaign from legal pitfalls but also fosters a fair and transparent work environment

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Practicing "The Four Agreements” in the Mission-Aligned Workplace

By Kiera Hall • 08 Jan, 2024

Believe it or not, Tom Brady and I share a routine. No, I am not talking about waking up at 5 a.m. and washing down a gallon of water with a glass of egg whites. What binds us in a common thread is our shared commitment to an annual ritual that transcends the world of touchdowns and Super Bowls. It’s reading “The Four Agreements” by Don Miguel Ruiz . Every year, amidst the chaos of professional pursuits and personal growth, both Brady and I find solace in revisiting this work, which seems to become even more relevant with time. "The Four Agreements" might be a quick read, but its impact is long lasting. It's a compass that guides us through the intricacies of life, offering principles that can be studied by anyone and applied to anything. In this blog post, I will talk about the agreements and what practicing them looks like in my work with political, faith-based and non-profit organizations. Agreement One: Be Impeccable with Your Word In the workplace, words carry weight – they can build bridges or erect walls. Being impeccable with your word means expressing yourself authentically and with integrity. In mission-driven settings, where ideals and values often take center stage, the power of words becomes even more pronounced. Communicate clearly, transparently, and with purpose, aligning your speech with the principles you uphold. The gist: Words have power. Choose wisely. Why it matters: Being impeccable with your word matters because it establishes trust and credibility in professional relationships. It ensures that your communication aligns with the organization's values, fostering a transparent and reliable environment. What it looks like: Imagine a scenario where a team member expresses a concern about a project. Instead of dismissing it, you respond with empathy, acknowledging their perspective and working collaboratively to address the issue. This demonstrates authenticity and integrity in your communication. Agreement Two: Don't Take Anything Personally In the heat of professional interactions, it's easy to feel personally attacked or offended. By not taking things personally, we are able to save our energy for addressing the tasks at hand without being drained by perceived interpersonal issues that might not even be based in reality. In an organizational setting, understanding that others' actions and words are more about them than about you can be a game-changer. The gist: Detach from personalizing every encounter and focus on the broader objectives at hand. Why it matters: Not taking anything personally is crucial for maintaining a positive and productive work environment. It allows individuals to focus on tasks and objectives without being hindered by personal emotions, promoting teamwork and efficient problem-solving. What it looks like: “I would have liked to be included in that meeting, but nobody invited me. Maybe it was an oversight, or maybe they assumed it would not have been of interest to me. I am going to talk to the Agreement Three: Don't Make Assumptions Assumptions can be detrimental in any workplace, but they become particularly perilous in political and faith-based settings where many of us see our work as a reflection of our most deeply rooted interpersonal values. Ruiz advises against making assumptions, urging us to seek clarity instead. Whether dealing with diverse political ideologies, religious perspectives, or philanthropic goals, approaching situations with an open mind and a willingness to understand differing viewpoints fosters a more inclusive and harmonious workplace. The gist: Making assumptions quickly leads to misunderstandings and conflicts. Get into the practice of keeping an open mind. Why it matters: Avoiding assumptions is essential for building understanding and cooperation among individuals with different beliefs and values. It helps prevent stereotyping and allows for open-minded collaboration. What it looks like: “My colleague said something that caught me off guard as it didn’t align with my political beliefs or the beliefs I feel like anyone who works on this campaign should possess. I am going to ask them for more clarity before drawing any conclusions about what they actually meant based on that brief interaction.” Agreement Four: Always Do Your Best Always doing your best means embracing both self-compassion and dedication, recognizing that there are days when your absolute best may surpass previous achievements, while on other occasions, it may require a bit more resilience and acceptance. It's a commitment to staying attuned to the present moment, giving your all, and cultivating a mindset that values progress over perfection, understanding that each day unfolds with its own unique challenges and opportunities for growth.This principle encourages a dynamic understanding of excellence, acknowledging that the quality of your best can naturally fluctuate based on various factors, including energy levels, circumstances, and even emotional well-being. The gist: Anything worth doing is worth doing intentionally. Try to give your utmost effort in every situation, recognizing that your best may vary from day to day. Why it matters: Keeping our focus on doing our best in the present moment helps us achieve great things, little by little over time. What it looks like: “We fell short of our goal for ticket sales at this year’s gala despite using every resource available to us to promote the event. For next year’s event, we should consider an RFP process for fundraising consultants who can expand our reach. We learned so much through this process and had fun along the way. Next year’s gala will be even better!” Conclusion In the world of high-stakes competition and ever-evolving dynamics within the workplace, identifying your personal values is essential for success and well-being. For me, these four agreements represent solid principles that offer more than just path to personal fulfillment – They lay the foundation for a workplace culture characterized by integrity, resilience, collaboration and personal responsibility. Whether we are a quarterback aiming for another championship or an advocate campaigning for social change, the wisdom of "The Four Agreements" helps us show up as our best self. Have you read a book that fundamentally changed the way you show up at work? Let me know in the comments. I’d love to know!