Worker Misclassification and the Freelance Economy
HR Daily Advisor
APRIL 4, 2017
Besides the threat of class action lawsuits, misclassification of workers can lead to liability for unpaid tax withholdings, unemployment insurance taxes, workers’ compensation premiums, overtime, minimum wages, sick and vacation pay, among others. Misclassification of workers can be costly. Penalties and interest may also be assessed.
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