Incorrectly classifying employees as actual employees or independent contractors is a legal risk that can cost your business millions. The federal government is cracking down on the issue, and many states are pushing to make worker misclassification a crime.
Two businesses learned this lesson the hard way. SOH Distribution Co., Inc. and G & A Snack Distributing, Inc. – subsidiaries of Snyder’s of Hanover, Inc. – misclassified nearly 1,500 delivery drivers as independent contractors rather than full-time employees. The employees took action, resulting in a $10 million court settlement to be distributed among the drivers.
Get expert guidance on properly classifying employees with ComplyWare™ FLSA software, which includes a convenient Classification Wizard and the latest FLSA regulations.