Misclassifying a Worker as an Independent Contractor
Hypothetical: Sally owns Sally’s Baked Goods With Muffins, LLC. Sally uses independent contractors for her baking. That way, she does not have to provide workers compensation, pay taxes on her workers, and it provides her with the flexibility to terminate a worker without worrying about all of those “pesky employment laws.” One day, her best worker, Barb gets hurt on the job. Now, Barb is demanding that Sally cover the cost of her medical care and the time that she is off of work. Sally decides that she needs to seek the advice of a business attorney. The business attorney explains...
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