Debbie Edney, Amanda Williams, and Jenna McGee wrote an article in The Real Estate Network magazine on how "misclassification of workers has increasingly become a target of the U.S. Department of Labor, the National Labor Relations Board, and plaintiffs' attorneys who believe that many companies incorrectly use and identify employees as independent contractors."
"Whether a regulator takes action or an independent contractor sues claiming to be misclassified," they wrote, "these cases pose significant risks for companies. In late 2023, two national companies paid $55 million and $30 million to settle misclassification claims. In most cases, the settlement is just the start of the impact to the bottom line: fees, penalties — including criminal penalties — are possible, and reclassifying independent contractors as employees results in substantial increases in labor expenses going forward."
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