Tag: misclassifying workers

Willy Wonka’s Chocolate Factory: A Sweet World with Sour Labor and Employment Practices

The close of 2023 treated us to Wonka, a prequel to the beloved childhood classic, shedding light on the origins of the iconic Chocolate Factory. Although Willy Wonka initially began his chocolate empire with good intentions, he inadvertently concocted a recipe for labor and employment violations. As employers aim to sweeten their practices in 2024, […]

Best Practices for Avoiding Worker Misclassification

Up to 30 percent of employers misclassify their employees as independent contractors, according to national estimates. Misclassification occurs when an employer improperly classifies a worker as an independent contractor instead of an employee. Unfortunately, the consequences can be severe. Some businesses intentionally misclassify workers to try to save on taxes or avoid other costs associated […]

Gig

Gambling on independent contractor status? Stack the deck in your favor

by Gary S. Fealk Smart businesspeople are adept at finding ways to reduce their costs. However, cutting costs associated with employment by using independent contractors is a big risk unless you take great care to make sure you aren’t misclassifying employees as independent contractors.  What’s all the fuss about? Various government agencies have been increasingly […]

Employers can learn lessons from DOL’s FLSA woes

Many thought it ironic in mid-August when news broke that the U.S. Department of Labor (DOL) had agreed to a $7 million settlement in a 10-year-old dispute with its own employees and their union. The same agency charged with policing how employers comply with the wage and hour law apparently had compliance problems of its […]

Employers face greater scrutiny for employee misclassification

by Ryan B. Frazier Employers sometimes classify employees incorrectly under the law. For example, employees may be treated as independent contractors, who are considered self-employed. Although misclassification may be intentional, it is most often done mistakenly under a belief that workers are properly classified.  Employees are misclassified for many reasons. Employers may try to avoid […]

FedEx, Uber, and the new economy: redefining the working relationship

by Mark I. Schickman Many of my clients are looking for ways to redefine the working relationship away from the employee model. There are various motives for this: the desire to avoid employee liability, the hope to avoid paying taxes and benefits, and the goal to avoid “head count” (whatever that means). But the law […]

Misclassification mistakes: Know risks and prevention strategies

It’s almost an understatement to call misclassification of employees as independent contractors a hot topic. It’s certainly the subject of a growing list of court cases, government agency investigations, and legislative initiatives. Various agencies at both the state and federal level have been in crackdown mode for a few years now, and it’s no wonder: […]

Risks, Benefits of Using Contingent Workers

by Craig Borowski Many employers use contingent workers: independent contractors, leased employees, consultants, and temporary employees. While using an alternative workforce has benefits, it can create legal and practical risks as well. If you use or are considering using contingent workers, here are some benefits and risks to weigh. Audio Conference: Independent Contractor Myths: New […]