In recent years, the federal government and the Commonwealth of Massachusetts has paid special attention to the misclassification of employees as independent contractors. If you, as a business owner, are found to be in violation of these rules, you stand to face severe penalties, including devastating fines.
When it comes to the proper classification of independent contractors and employees, it is wise to contact a skilled attorney at Seder & Chandler, LLP. Our depth of experience in business law is a great benefit to our clients. Our lawyers can quickly assess your business model and your classification system to determine if you are falling within the governmental guidelines.
There is no single rule for determining whether an employee is an independent contractor or an employee. Rather, the overall relationship must be investigated. There are several determining factors that must be addressed, including:
- The duration of the relationship between the parties
- The skill level required to complete the job tasks
- The extent to which the hired party must take direction from a supervisor
- The extent to which the hired party is eligible for employee benefits
- The tax treatment of the hired party
If you are concerned that you might have misclassified employees as independent contractors, it is wise to seek the counsel of an experienced attorney. We can carefully examine your records and properly advise you on the best course of action. We encourage business owners to take a proactive approach to avoiding disputes rather than simply reacting to problems as they appear.
With questions regarding independent contractor classification or any other aspect of business law, we encourage you to contact a lawyer at Seder & Chandler, LLP, in central Massachusetts and the MetroWest Boston area.