Attorney Murphy advises both employees and employers on how the employee classification system (ECS) affects their respective employment or business. The ECS is how a company classifies its workers as either on-call, per diem, independent contractor, temporary employee, part-time or full-time employee. Whether you are a worker or business owner, the ECS represents a potential financial pitfall.
There are numerous financial pitfalls for an employer, ranging from fines due to employee misclassification, liability for benefit premiums, litigation costs, back pay, overtime pay, tax audits, and loss of employment insurance coverage.
Generally, workers are unaware that they are misclassified. For example, a per-diem employee or independent contractor may actually be considered a part-time employee as a matter of law depending on their work schedule, pay rate, tax status, and any written or verbal conditions of employment, among other factors. In this situation, it may be too late for this particular worker to correct the misclassification, resulting in a loss of compensation and benefits.
Contact Attorney Murphy for a consultation on how the employee classification impacts your employment or business.