Analysis of Worker Classification
In an evolving employment landscape and the rise of the modern day “gig-economy,” the classification of workers continues to be a major business issue for employers of all sizes.
Proper classification of your workers is critical to avoiding exposure in many areas including tax, benefits, and wage and hour claims.
What’s in a name?
When it comes to classifying your workers, their name – or title in this case – holds consequential meaning. Classification impacts everything from what taxes are owed to how the worker delivers services. An error in worker classification can result in legal action against your company and necessitate payment of fines and damages to those who have been wronged. In some states, improper worker classification can even lead to the temporary shut-down of your operations.
To be an Employee or an Independent Contractor, that is the question
It is imperative that you make an informed decision when designating workers as employees or independent contractors. When we work with you, we get to know your industry, business needs, and culture, so we can provide advice regarding classification decisions. We then guide you through crafting the necessary documentation to support these designations.
When disputes arise regarding classification issues, we stand ready and committed to representing you in courts and before administrative agencies.
Wage and Hour Compliance
We work with you to maintain compliance with federal, state, and local wage and hour laws. As an employer, you must understand your industry, operations, job functions, titles, and responsibilities to ensure that each of your employees is paid in accordance with legal and industry standards. We provide clarity around complex rules and guidance, ensuring that you are properly interpreting and applying laws that are often changing.
Improper worker classification also has negative federal and state tax consequences for employers. We work with you to assess whether you have any exposure for tax liability and assist you in correcting any misclassifications within your workplace.