Classifying Employees as Independent Contractors = Cheating

Posted on Sep 05, 2014

One of the most-frequently encountered cheating schemes is misclassifying employees as independent contractors. By cheating like this companies gain the following advantages:

  • they can get out of paying the minimum wage
  • they can get out of paying any overtime
  • they can get out of providing workers compensation insurance
  • they can get out of paying unemployment compensation premiums
  • they can get out of paying payroll taxes

All of these add up to significant competitive advantages for cheating companies. The Lexington Herald-Leader reports on these practices: Taxpayers and Workers Gouged by Labor Law Dodge

Read More About Classifying Employees as Independent Contractors = Cheating...