Source: Cory Austin
Today’s gig economy has led to an increase in class action lawsuits alleging people labeled as independent contractors were treated as employees … or that employees were incorrectly classified between non-exempt and exempt. Recent verdicts in misclassification lawsuits have amounted to millions of dollars between back wages, legal fees and mandated penalties.
When everything is spelled out in writing before the relationship begins, you can limit your exposure to lawsuits. That’s why Functional Job Descriptions (FJDs) that specify roles, responsibilities, compensation and the position classification — signed by ICs and employees upon hire — are a vital defense tool in court. Read more in our informative article: Accurate Job Descriptions—Your Ready Defense Against Employee Misclassification Lawsuits.
As always, we’re here to help. Contact us.