Today’s tight economy has prompted many employers to try to reduce costs—including overtime—by classifying workers as independent contractors instead of employees.
That hasn’t escaped the notice of the U.S. Department of Labor (DOL), which has stepped up efforts to deter misclassification. A recent case—Solis v. International Detective & Protective Service, Ltd. (No. 09 C 4998, N.D. Ill., 2011)—illustrates how misclassification can result in an expensive lawsuit and emphasizes the need for employers to understand the distinction between employees and independent contractors.
Quick ruling against employer
International Detective & Protective Service, Ltd. (IDPS) provides private security services using security guards to prevent and detect break-ins, vandalism and unauthorized activity at construction sites, shopping malls and stores. IDPS classified the security guards as independent contractors and had them sign employme...(register to read more)