CBS MoneyWatch spoke with Morgan Lewis partner Susan Harthill on the recent guidance from the Department of Labor that says an on-demand company is correct in identifying its workers as independent contractors. Susan talked about the importance of the proper classification of workers to avoid costly lawsuits.
"If workers are misclassified as independent contractors, and [a] court were to find they're employees, the employer could be responsible for back pay, overtime and minimum-wage violations and record-keeping violations. There could be [family and medical leave] implications, tax implications, workers' compensation implications," Susan says in the article. "Classification is a big concern for all businesses."