Having a clear understanding of how to properly classify your workforce is a fundamental requirement of business ownership. Worker classifications identify workers as either an employee or a contractor. Those classifications require businesses to comply with specific state and federal laws.
Making the distinction between building a workforce of employees or contractors, may seem like a personal preference, but it goes far beyond that. Legally, all workers are required to be classified as employees. That classification can only be changed to contractor when specific requirements are met. Making the wrong classification exposes businesses to potential penalties, fines, taxes, interest, late fees, and legal battles by misclassified workers.
Those classified as an employee are privy to legal protections and benefits. Those protections are not always the same for independent contractors. And while many businesses see value and savings from hiring contractors, government officials take active measures to ensure that organizations are not purposefully misclassifying workers to stifle the protections and benefits of individuals.
The consequences for misclassification are significant. Avoid misclassifications in your line of business by equipping yourself with the legal information you need.
Grab your calendar and reserve March 13, you won’t regret it
Join us on Tuesday, March 13 at 8:30 a.m. EST for a webinar on this exact conversation. Led by Mimi Soule of Soule Employment Law Firm, the webinar will give you the information you need to avoid the pitfalls of worker classifications. Go ahead and register here.
Gain an in-depth understanding of the factors that separate an employee from a contractor, and the state and federal laws that are attached to those classifications. Use this time to inform or remind yourself of the differences in classifications. Walk away feeling confident that you are safeguarding your business from the ramifications that can come from worker classifications. Because the decisions you make regarding the classification of your workforce can be a determining factor of business success of failure.