There are certain risks employers face when designating a worker as an independent contractor (IC) (sometimes referred to as consultants). Misclassification of employees as ICs can result in FLSA violations and problems with the IRS, unemployment compensation issues, and workers' compensation problems, including potential criminal liability if workers' compensation insurance was not obtained. Merely labeling a worker an IC or consultant is not a defense.
Employers should also be aware of Title VII exposure and certain duties under the FMLA when hiring workers from a staffing or employment agency, often labeling them as temporary employees.
Please join us as we discuss the relevant factors which are considered when a determination is made as to whether an independent contractor is in fact legally an employee, and what employers can do to minimize their risks of regulatory action and financial exposure.
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