Stop Employee Misclassification and Pay Fairly to Employees to Avoid Heavy Compensation

Recently, there has been a trend where companies treat their employees as independent contractors to avoid certain responsibilities and extra cost involved. These costs are –

  • Payroll taxes
  • Workers’ compensation insurance
  • Unemployment benefits
  • Overtime pay
  • Meal break and the rest pay
  • Reimbursement of business expenses

Anybody who works for an employer is either an employee or an independent contractor. Tax consequences of classifying someone as an employee are expensive. Thus, employers try to change them into independent contractors when and where required. Therefore, the government ensures that workers are classified properly to get benefits from the employer. 

In case, you feel that you or anyone in the family has suffered a huge loss due to unfair employment practices held in your company, then you can always approach a lawyer to seek justice. At Hayber, McKenna & Dinsmore LLC, all attorneys are known for getting compensation and justice for employees who have suffered huge loss due to employers. 

Their offices are located in Hartford and New Haven, CT as well as Springfield and Northampton, MA. All branches are known for their experienced attorneys. The Springfield employee misclassification attorney will listen to your story, and explain in detail all your workplace rights. They also investigate the case properly to get proper compensation. 

As an employer, you should know the difference between an employee and an independent contractor. This helps in fighting back for your rights.


  • Uses equipment and tools of the company. 
  • Follows the instructions and directions of the company to complete a certain job. 
  • Works within the company’s premises and follows their schedule. 
  • Works only for the company that has appointed and no other businesses. They get paid a proper salary and other benefits like vacations, holidays, health insurance, reimbursement, and medical claims, etc. 

Independent Contractor

  • They will use their equipment and tools instead of the company. 
  • They have their schedule decided and follow their procedure to complete a job, instead of following the company. 
  • They have their own office space and don’t work within the company premises. 
  • They advertise all over the state to work with different businesses or individuals. 
  • They’re responsible for any expense incurred. 

Earlier businesses have practiced the rule of misclassifying employees, which has led to job and financial losses to the employees. Therefore, the IRS and DOL have set certain rules to avoid misclassification of employees. They are spreading awareness which is an eye-opener for many employees. The result is that the cases of employee misclassification have increased in a few years. 

In case, the company is caught in misclassified employees, then the penalties and compensation can be big –

  • Back payment of wages, which can be millions of dollars. 
  • Compensation to the sufferer, which can also be a big amount as alone the employee doesn’t suffer, but his/her family is also undergoing loss and trauma. 
  • The cost involved in the trial and payment of lawyers can also be another expense. 
  • The biggest drawback is the loss of brand image. The news will spread like fire and it can hamper your company’s reputation. 

 It is best to maintain best practices and follow a protocol to avoid employee misclassification. Treat your employees fairly and provide them all benefits that they deserve.

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