Don’t Misclassify Your Employees

Many persons you may hire as independent contractors may not be so according to recent court rulings around the country. More persons in fields with independent contractors customary in a business model increasingly filing wage and hour claims as employees. Contributing to this uptick in claims is an awareness of plaintiff’s lawyer of successful claims and closer scrutiny by agencies such as the Internal Revenue Service and Department of Labor. Many employers favor independent contractor status to avoid paying minimum wage, overtime, workers’ compensation, insurance and other benefits. However, employers may be liable for these costs as well as additional penalties if they misclassify an employee as an independent contractor. The following are some factors to take into consideration when evaluating whether a person is an employee or independent contractor:

• The degree of control that the putative employer has over the manner in which the work is performed
• The worker’s opportunities for profit or loss dependent on his managerial skill
• The worker’s investment  in equipment or material or his employment of other workers
• The degree of skill required for the work
• The performance or duration of the working relationship
• The degree to which the services rendered are  an integral part of the putative employer’s business

If you are a member of Spiegel & Utrera, P.A.’s General Counsel Club and have questions about hiring process, call (800) 734-9900 or clubassist@amerilawyer.com for assistance. Remember, as a member of the  General Counsel Club, you receive unlimited legal, business, credit and tax advice all year long.

Spiegel & Utrera, P.A. is a corporate law firm with its main offices located in Miami, Florida with offices throughout the United States. As a law firm, we do more than just help you form your business entity. We stand ready to help with the maintenance of your legal business entity! We will assist you with Incorporation Service, Trademarks, Copyrights, Estate Planning, Legal Counsel, Wills, Trusts, Agreements & Leases, Corporate & Company Changes.