If you aren't certain your workers are properly classified as employees or independent contractors, you're not alone. Unfortunately, the Department of Labor is keeping an eye out for companies that classify workers as contractors when they are legally employees. This is because contractors aren't entitled to employer contributions to payroll taxes, provide workers' comp, unemployment insurance and other benefits. They are also exempt from a number of protective workplace laws.
If your company works with independent contractors, you may be concerned about the recent litigation surrounding the issue. With the "gig economy" a growing factor in the American economy, workers have been asking courts to rule that they are legally employees rather than contractors.