Clarifying the status of certain employees has always been a challenge for employers. And the importance of proper classification for independent contractors cannot be over emphasized.
California and federal labor laws mandate the distinctions between independent contractors and employees. Yet the issue continues to result in lawsuits.
Employee classification has become increasingly critical for employers and incorrectly classifying employees as independent contractors can be costly.
An article from Forbes.com recently noted, "This fundamental worker status issue has become one of the most consequential legal determinations around. If you’re in business and guess wrong, the liability for past years can be crushing."