11 Consequences of Misclassifying Your 1099 Contractors

consequences diamond signFrom the Work Market Blog, Jeffrey Wald discusses some of the consequences of misclassifying workers as independent contractors.  While the first few are fairly well known consequences, the latter part of list identifies consequences that most people don’t think about.  For example, Jeff writes:  

#7. Anti-Discrimination Violations

Failure to provide coverage under state and federal anti-discrimination laws for those improperly classified as independent contractors.

#8. FMLA Act Violations

Liability exposure for failure to provide leave and reinstatement to eligible employees under the federal Family and Medical Leave Act (FMLA) and other leave entitlement laws.

#9. Mistreatment of Military Personnel

Violations of reinstatement and leave rights for military personnel under USERRA.

#10. WARN Act Violations

Failure to count misclassified workers in determining federal WARN Act compliance obligations in the event of mass layoffs and plant closings, and failure to give required WARN notices to affected misclassified employees.

#11. Age Discrimination Liability

Potential invalidation of Releases and Waivers of employees 40 and older for failure to give accurate statistical information required under the Older Worker’s Benefit Protection Act.

Read the full story at 11 Consequences of Misclassifying Your 1099 Contractors – Work Market Blog

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