Misclassification shuts down Charlotte firm’s out-of-state job — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
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Misclassification shuts down Charlotte firm’s out-of-state job

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in Employment Law,Human Resources

Charlotte-based Sandoval Con­­struc­­tion was forced to suspend work on a Radisson Hotel in New London, Conn., after the Connecticut De­­part­­ment of Labor charged the company with improperly classifying employees as independent contractors.

The enforced work stoppage is part of a crackdown that affected 20 different sites in Con­nec­ti­­cut. Over the past 14 months, the state DOL has inspected 158 construction sites, reviewed 600 contractor records—and issued 268 stop-work orders.

Note: State and federal departments of labor are cracking down hard on misclassification. Two reasons: It shortchanges workers—and it re­­duces tax revenue, something cash-strapped governments are looking for. Employers that misclassify employees as independent contractors face possible penalties in addition to back pay and benefits due the misclassified workers.

Advice: In doubt about a worker’s proper employee/contractor status? It’s time to call on your attorney for help.

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