Importance of Employee Classification

Businesses often classify their workers with insufficient regard of governmental and court standards.  The distinction between a worker being classified as an employee or as an independent contractor can substantially change what benefits the worker is eligible to receive (such as overtime and unemployment). Misclassification of employees could result in lawsuits filed against a business by its worker(s), and tax and other penalties may also be imposed on the company. There are many risks to a company misclassifying its workers.

Partner Keith Leonard explores the importance of worker classification in his most recent column for ACtion Magazine. Read the full article, including explanations of how the IRS and courts break down the employee vs. contractor classification issue, here.

Published January 10, 2018