home :· compliance :· Vizcaino v. Microsoft
From a historical perspective, a series of events [Vizcaino v. Microsoft Corp., 97 F.3d 1187 (9th Cir. 1996) ("Vizcaino I"), aff'd, 120 F.3d 1006 (9th Cir. 1997) (en banc) ("Vizcaino II")] has sent ripples of fear, doubt and uncertainty into Board rooms and Executive suites of Corporate America. We have compiled a brief summary on this landmark case and links to web sites that may provide you with additional information.
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Microsoft (circa 1989, 1990) is audited by the Internal Revenue Service [IRS] for misclassification of independent contractors.
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The workers in question should have been treated as employees for FICA, FUTA and withholding taxes.
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Microsoft agreed with the IRS, admitted to wrongly classifying the workers and paid back taxes, overtime, etc.
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Troubles were not over for Microsoft – misclassified workers sued Microsoft for back benefits including 401(k), discount stock purchase, etc.
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Ninth Circuit Court of Appeals upheld a much-publicized decision in favor of the workers (Vizcaino v. Microsoft Corp., 97 F.3d 1187 (9th Cir. 1996)).
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In addition to the above $97 million settlement, On April 16, 2001, the U.S. District Court for the Western District of Washington in Seattle upheld the award of $27 million in attorneys’ fees in this class action case.
Links to additional references on Vizcaino v. Microsoft
 
Epstein Becker & Green, P.C.
Microsoft and Its Legacy – Employers Confront "Contingent" Worker Benefit Issues, January 20, 1999, Epstein Becker & Green, P.C., Howard Pianko
 
Thelen Reid & Priest LLP
Recent Decisions in Vizcaino v. Microsoft Corp. Redefine the Term "Employee", November, 1999, Thelen Reid & Priest LLP, et al.
 
Tech Law Journal
Ninth Circuit Court of Appeals Opinion, Re: Vizcaino v. Microsoft., Date: May 12, 1999
 
Microsoft Press Release
Microsoft Corp. and Bendich, Stobaugh & Strong, P.C. Announce Settlement of "Temp" Case, Dec. 12 2000
 
Nolo
Independent Contractors vs. Microsoft: Don't Treat Contractors Like Employees
 
CNN.com
Microsoft temps sue for benefits, November 23, 1998
 
 
Note: The information contained herein is provided by iamindependent for general information purposes only; it is not intended to be, and should not be used as a substitute for professional legal advice.