One of the costliest mistakes that employers can make is also one of the easiest mistakes to make. Employee misclassification happens very frequently in companies in the state of Pennsylvania, and it can often lead to issues such as unpaid overtime, that can, in turn, result in legal disputes.
If you are an employer, it is important that you put in place processes in order to prevent the misclassification of workers. This will help you to avoid costly litigation in the future.
What is the difference between employees and independent contractors?
In general, an employee is a person who is on the payroll. This means that they have a boss who determines their working hours. In addition, the equipment needed will be provided by the company. In contrast, a contractor will typically bring their own working equipment and be paid on a contractual basis.
How can I avoid employee misclassification?
It is important to develop a clear process within your company in order to clearly classify all individuals. Managers should understand how to classify employees, and there should be documentation that organizes this information adequately?
What are the benefits of correctly classifying employees?
While developing a system to manage employee classification can take some time, it will help your organization to avoid litigation costs. Employee misclassification disputes can become a nightmare for employees.
If you are interested in avoiding employee misclassification as a Pennsylvania employer, it is important to investigate different practices that will help you to do this. Your strategy should be tailored to the type of industry you are in.