The Cost of Worker Misclassification

February 19, 2016 | posted in: Client Focus, News | by

While the issue of worker misclassification is nothing new, its worked its way back into recent headlines thanks to the booming popularity of new on-demand services offered through mobile apps. Whether done purposefully to evade employment laws and keep costs down, or accidentally due to lack of knowledge, the penalties of worker misclassification is costing companies big. Just last month, Lyft, a California based ride-hailing company, paid $12.25 million to settle a worker misclassification class-action lawsuit.

Although recognizing workers as employees instead of independent contractors can increase cost of business by 30%, according to The Los Angeles Times (http://ow.ly/Yw4fa), potential penalties of misclassification can be catastrophic. Do you know the six factors that determine independent contractors versus employees? Learn about the importance of correctly classifying your labor force from Lexology (http://ow.ly/Yw4qn).

Moore Staffing’s Employee Payrolling Program is a great way to avoid the potential costs of worker misclassification. To learn more about¬†this program, give us a call at 978-682-4994 or email team@moorestaffing.com.

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