From Business News Daily, Marisa Sanfilippo recommends that small businesses conduct a FLSA self-audit to ensure compliance including a review of whether a worker is properly classified as an employee or independent contractor. Marisa writes:
Contractors and nonemployees
This is one of the trickier points for many small business owners. If your business uses a high percentage of independent consultants or contractors who actually function more as employees, you could be in trouble. Not sure what the difference is?
The Department of Labor (DOL) has a great infographic that breaks down the distinction between an employee and independent contractor. If you have a worker whom you’re claiming as an independent contractor but who does not determine when and how they work, they’re probably an employee. If there is any chance you could be in violation of claiming an employee as an independent contractor, you can gain clarity from the Wage and Hour Division of the DOL.
Read the full story at FLSA Self-Audit Compliance Can Help Small Business