According to the United States Department of Labor (DOL), 30% of employers are guilty of employee misclassification of independent contractors. Because of this, the DOL and Internal Revenue Service (IRS) have joined forces and are working with states to coordinate enforcement efforts. Employers who misclassify employees are subject to liability for unpaid wages, as well as severe tax penalties.
“Recently, we have observed several circumstances where employers have incurred large financial liability as a result of misclassification of individuals as independent contractors rather than employees,” said Offit Kurman labor and employment attorney Howard K. Kurman. “What may seem like a clear-cut distinction can easily become muddled when even the best intentioned employer makes an inadvertent mistake.”
Distinguishing between Employees and Independent Contractors
While there are several factors used to distinguish between employees and independent contractors, the two most significant factors are:
- The worker’s degree of independence
- the employer’s degree of control
How can you effectively determine whether workers are independent contractors or employees? Making such determinations is often tricky. So, if you are having a difficult time classifying your employees, do the smart thing and consult an experienced labor and employment attorney, like the ones found at Offit Kurman Attorneys at Law. We will help you classify employees and reclassify some of your independent contractors as employees, as well as help you prepare for possible investigations.
If you have any questions about Labor and Employment Law or Employee Misclassification, please contact Offit Kurman labor and employment attorney and chair of the firm’s Labor & Employment Practice Group Howard K. Kurman at firstname.lastname@example.org. Mr. Kurman regularly counsels clients on all aspects of proactive employment/labor issues.
Offit Kurman Attorneys at Law: Labor & Employment Law Practice Group
At Offit Kurman Attorneys At Law, the attorneys in our Labor & Employment Law Practice Group have the knowledge and experience to provide sound guidance in labor and employment issues. Our attorneys offer a broad range of services, from labor negotiations and alternative dispute resolution, to wage and hour investigations, defending harassment and discrimination claims as well as wrongful termination lawsuits.
If you would like to learn more about Offit Kurman’s Labor & Employment Law Practice Group to see what we can do for you, please fill out our contact form to access the knowledgeable legal guidance that our experienced labor & employment attorneys offer. You can also connect with Offit Kurman via Facebook, Twitter, Google+, YouTube, and LinkedIn.