Over the past three years, the Connecticut Department of Labor has audited 95 youth sports leagues, limiting the programs they can offer or increasing the cost to families.
The DOL audits focus on whether workers paid by the league, including referees, coaches and assistants, are properly classified as independent contractors.
Of those 95 audits, the DOL changed the classification status of 44 organizations. The reclassification of referees and clinicians as employees means the organizations will have to pay payroll taxes – including unemployment insurance – for an individual they may only employ for one game throughout an entire season.
The attempts by the Connecticut DOL to change the classification of referees and clinicians for youth sports organizations has the potential to affect business throughout Connecticut. By changing the definitions of who constitutes an employee or contractor, businesses may find themselves having to put new workers on their payroll, even for one-time minor services.