Resolution
In its analysis, the court noted that the employer “established available shift times; fined dancers for tardiness; gave instructions on physical appearance and dictated hair, dress, and makeup choices; established several dance-floor rules; banned changing into street clothes before the end of shifts; and set the price and duration of all private dances.”
Solution
Meanwhile, as this and other cases have demonstrated, courts aren’t interested in whether or not a worker signs an agreement stating they are a contractor when determining employee misclassification. Instead, whether an employer has misclassified an employee depends only on who makes decisions about someone’s work and work conditions.
BEST SOLUTION:
Call Alternative HRD!
When it comes to worker classification, the best thing you can do is be proactive, not reactive. Rather than waiting for a potentially precarious situation to occur, you should make it clear to your workers exactly how they will be classified from the start and make sure their roles stay within the definitions provided by the IRS.
Ultimately, it’s never a good idea to try to get around employment laws by falsely categorizing an employee as an independent contractor. Usually, you’ll be subject to consequences under the tax code, at the very least, and you may even be subject to a lawsuit in federal court, under certain circumstances.
We can help! If you have questions on worker classification, contact us today at
605.335.8198
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