Misclassifying employees can be a seriously costly mistake

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.

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Misclassifying employees can be a seriously costly mistake