Unit 16 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.