Crushing Penalties Proposed for Using an Independent Contractor in Michigan

Two Proposed Bills, HB 4390 and HB 4391, Would Terrify All Buyers of Independent Contractors

Imagine you run a start-up or any small business. Every minute, every dollar, is crucial.

You need to use two specialists for a part-time three-month contract for problem-solving, invention, marketing or financial planning. Sounds good--you'll get the work done in 90 days.

But if these bills pass, your attorney will tell you, "If either contractor claims they wanted to be an employee, you could face two years in jail, hundreds of thousands of dollars in fines—some of which will go to them—and no way to defend yourself."

No buyer will run that risk. With these bills, Michigan is considering crushing self-employment, permanently.

The tweet below summarizes how heavy these penalties will be for IC clients, including prison time.

Link here to Mike Hruby's X account (formerly Twitter). Follow Mike for facts and perspectives on self-employment.