New Tools to Prevent Misclassifying Workers & Independent Contractors

misclassifying workers as independent contractorsMisclassifying workers as independent contractors is a far too easy and very expensive mistake for employers to make.

In 2015, the Department of Labor collected over $74 million in back-wages for misclassified workers.

Fortunately, the DOL has launched a great website to help businesses avoid these costly errors!

Employers don’t understand how to use independent contractors:

If your business is misclassifying workers as independent contractors to save money on payroll related expenses such as taxes and benefits, you’re breaking the law.

Just because a worker wants to or is willing to be paid as an independent contractor, doesn’t mean it’s legal.

I’ve written before about how the laws that regulate the use of independent contractors can be complicated to understand and apply.

Many companies unknowingly violate these rules on a regular basis.

Department of Labor website aims to prevent misclassifying workers:

The DOL has launched a new website with many resources to help businesses correctly navigate the rules for employee classification and hiring independent contractors.

The site contains several tools for both employers and workers.

Make sure you’re not misclassifying workers:

If your business utilizes independent contractors, you should check out the DOL’s website to ensure you are on the right side of the law.

It’s better to do this yourself — before your workers or the Department of Labor decide to do it for you!

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