When you look at all the employee misclassification laws, everything becomes quite confusing. Mislabeling the job description of an employee is a really important thing these days and the authorities will be really careful to spot such problems. You can easily take a look at the following infographic to see how common this situation is: http://www.sattirajulawfirm.com/new-jersey-misclassified-employment-lawyer/
If you want to learn more about this, here are some important tips that will help you learn a lot more about employee misclassification than what you initially thought.
Contract Workers Are Not Allowed To Be Full-Time Employees
The exact opposite is also true. So many in Canada and US take contract jobs as they need to. We also see an increase in contract work and full-time freelance work. Everything is basically overshadowed by the fact that there is an increase in employee misclassification. The business will find it as being quite expensive to pay the full-time employees the proper amounts together with benefits and tax deductions. We can say that employers that are faced with the following situations will be misclassified workers when contractors:
Misclassifying Employees Fees
When the business does not take the necessary precautions to be 100% sure that employees are labelled properly, they can end up being charged by the responsible governing bodies. The laws are now stricter than ever and the authorities in charge do work hard to enforce the labor laws. Misclassification ramifications are rarely clear but when you intentionally do this as a business owner and it can be proved, the fines are very high. At the same time, fraud charges may appear on your record.
The Exploitation Of Volunteers And Unpaid Internships
Employee misclassification also refers to the employees taking advantage of the unpaid internships and the volunteers that work for the firm. There are so many employees that are working to gain some experience and never receive money. Companies can end up being fined because of simply not paying the internships on a constant basis and having too many volunteers doing work that should be paid.
Employee Misclassification Can Be Prevented By Payroll Providers
In many cases a startup but even larger companies do not know the legal procedures that have to be respected when a new employee is hired. Because of this, international and local companies can sign a partnership contract with a payroll firm. That would help negotiate everything while also guaranteeing that all the regulations and laws will be respected.
Make sure that you are serious about employee misclassification. Never hire people without knowing the law since this would be a really serious problem. Because of the really high fees that can appear it is even possible the firm to end up in a bankruptcy position. This can so easily be avoided that it would be a shame not to do so.
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