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Companies routinely use independent contractors for special projects and isolated assignments as a way to cut down on the normal costs connected to hiring full time W-2 employees. However, companies often misunderstand what a true independent contractor is versus a W-2 employee.
This can place a bullseye squarely on a company’s back either through a Department of Labor (“DOL”) audit of its classification of laborers or through federal lawsuits filed under the Fair Labor Standards Act (“FLSA”) for alleged unpaid wages and overtime owed to misclassified independent contractors who are alleged to be employees.
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