Independent Contractor vs. Employee
Whether as a result of a complaint against a company or because the company is in an industry in which the Department of Labor (DOL) is focusing its investigations, the possibility exists that one’s company will be audited. When the Department of Labor conducts its audit, one of the areas it will investigate is the company’s classification of workers.
If your company has workers classified as independent contractors, it is important that they truly are independent contractors and not employees. No one factor exists in determining whether a worker is an independent contractor. Instead, a multitude of factors must be considered when classifying a worker.
Potential penalties from the Department of Labor exist for misclassifying workers, and the misclassifications can lead to additional penalties from the IRS and Texas Workforce Commission.
The attorneys at McCleskey, Harriger, Brazill & Graf, L.L.P. can assist you in evaluating your workforce and in dealing with the Department of Labor and Texas Workforce Commission should your business be audited.