Unit 17 Preview and Introduction


This unit will cover the following topics:

  • Why classifying workers as either employee or independent contractor matters
  • Different tests for classifying
  • Penalties for misclassification



Before hiring workers, employers must decide whether the worker will be classified as an employee or independent contractor. When an employer misclassifies a worker, it will be subject to some hefty legal and economic consequences, so properly classifying is paramount. This unit discusses why classification matters and the tests used to determine classification.


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To the extent possible under law, Samantha Prince has waived all copyright and related or neighboring rights to Entrepreneurship Law: Company Creation, except where otherwise noted.