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What are the consquences of Misclassification?

Are you incorrectly misclassifying your workers as independent contractors? You think no harm, no foul...right?  You couldn't be more wrong and this could come back to harm you and your business in serious ways.  Misclassification is common in many industries, but more commonly in trucking, home health care, construction, and housecleaning. Some studies indicate that as many as 25% of construction workers are misclassified as independent contractors.  A few recent lawsuits that have resulted in substantial damages to the employer/business and await around the corner for others if the misclassification is discovered.  Lyft was fined $12.25 million, FedEx was fined $240 million, and other businesses have been forced to close their doors over misclassification. There are also serious audit issues that arise when you misclassify employees, workers, or subcontractors. If you are not sure whether you are classifying your workers correctly, reach out to your agent or your workers compensation carrier, they can help you.


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