Company learns $62K lesson about classifying workers correctly
Here’s a good reason to make sure your workers are classified correctly: The feds have made it crystal clear they mean to come after any employer they suspect of classifying employees incorrectly.
This security firm just became the latest company to find out how costly misclassification errors can be.
Based on a Department of Labor investigation, Security provider Custom Security Solutions allegedly misclassified 34 security guards as independent contractors and failed to pay them the prevailing minimum wage, as well as overtime payments.
In the end, the company agreed to restore to $62,038 in back wages to the security guards – and maintain future compliance by making sure all of its employees are properly classified moving forward.
- Share on
Free Training & Resources
Webinars
Provided by Yooz
Further Reading
Another April 15 came and went, leaving many of us poorer and grumbling about government spending. For business owners and the CFOs and con...
As you’re prepping to file Forms W-2 or Forms 1099 for TY 2023, you know it’s tough to avoid all errors. So, it helps to be pre...
Ever wondered why Excel features a currency format as well as an accounting format? You’re not alone. The reason is, creating Exce...
One-week paycheck delays would leave nearly eight in 10 U.S. workers scrambling to cover bills, according to PayrollOrg’s 2025 Getting Pa...
How much will employers have to pay for any penalties related to tax year 2023 forms, including W-2s and other information returns? Weâ€...
An employer in Florida has agreed to pay $47,480 in damages to resolve a pregnancy accommodation charge, the EEOC recently announced. Th...
