Pitfalls of Worker Misclassification
Misclassification of workers creates a minefield for Connecticut employers in Connecticut. The distinctions between “exempt” and “nonexempt” employees and the differences between “employees” and “independent contractors” cause confusion and angst for businesses and for the professionals who advise them.
An employee’s right to receive overtime pay is dependent on whether or not that employee is “exempt” from applicable federal and/or state overtime laws. Understanding the legal requirements for “exempt” status is imperative for employers to avoid substantial payment obligations, fines and penalties.
Likewise, businesses sometimes classify workers as “independent” contractors or “1099’s” and forego tax withholdings. However, applicable state and federal laws allow the classification of workers as “independent contractors” only when certain specific tests are met. This webinar will review the requirements of appropriate classifications to help navigate this tricky terrain.
Stuart M. Katz is a principal of Cohen and Wolf and chair of the firm's Litigation group. He is a member of the firm's Employment & Labor practice group, and chairs the firm's Diversity & Inclusion committee. Stuart represents employers of all sizes in defending discrimination and harassment suits and litigating restrictive covenant, breach of contract, business tort and wage claims. He has been named "Lawyer of the Year" for Employment Law (Management) (2018) and for Employment Law (Individuals) (2016) by the Best Lawyers in America, for the Stamford, Connecticut metro area. He routinely provides guidance to employers and employees regarding personnel policies, handbooks and employee discipline.