Comcast Sued for Misclassifying Employees as Independent Contractors
I’ve previously encouraged employers to be careful (click here and here) about misclassifying employees as independent contractors. Comcast has now been sued in a class action lawsuit for allegedly doing exactly that.
Some speculate that this misclassification has become more common during our economic downturn. Employers don’t have to pay independent contractors overtime. They don’t have to reimburse work-related expenses. They don’t have to pay them benefits. They don’t have to withhold taxes. Sometimes, this kind of lawsuit results from an independent contractor filing for unemployment compensation. Independent contractors aren’t eligible for unemployment compensation.
But if the so-called independent contractor can show that she’s an employee, the employer will have much more than an unemployment comp problem. Bottom line: If you have a lot of workers you call independent contractors, you’d better get some legal advice to determine whether all or some of them are, in fact, employees.
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Last December, I did an audio conference on making sure you don’t misclassify workers as independent contractors: Creative Staffing — or Employee Misclassification? Know the Difference.
About Chris Parker
Chris Parker's practice focuses on the representation and counseling of companies in matters pertaining to the workplace and the protection of their intellectual property and trade secrets. In addition to serving as an advocate for clients, Mr. Parker is also trained as a mediator and frequently serves as a third-party neutral.
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About Jimmy Daniel
Jimmy Daniel provides counseling to businesses of all sizes related to the employment relationship. He assists in the drafting of employment agreements, policies, and handbooks, as well as provides guidance related to compliance with federal, state, and local legislation such as the Fair Labor Standards Act and the Family and Medical Leave Act.
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About Larry Bridgesmith
While serving in an Of Counsel relationship with the firm, Mr. Bridgesmith also serves as the Executive Director at the Institute for Conflict Resolution at Lipscomb University and as an officer and principal in Strategic Resolutions Group, LLC. In these roles, Mr. Bridgesmith brings over 30 years of legal experience in dispute resolution and innovative workplace strategies to clients, students and business entities alike.
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