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Recent ruling underscores risk of misclassifying workers

Recent ruling underscores risk of misclassifying workers - Complete Payroll

Recent ruling underscores risk of misclassifying workers - Complete Payroll

In Illinois, sanctions were recently imposed on a construction company who three workers claim misclassified them as “independent contractors”, resulting in a significant loss of income. The workers sued their employer, Master Hand Contractors, Inc., under the Fair Labor Standards Act (FLSA), and three of Illinois’ state laws: the Illinois Minimum Wage Law, the Illinois Wage Payment and Collection Act, and the Illinois Employee Classification Act.

The company initially lost the suit and was ordered to pay $340,000 to the workers. But, it was from their handling the subsequent appeal process that the sanctions were imposed. Master Hand Contractors’ counsel mishandled the process so severely, judges in the appeals court dismissed it as “frivolous”, and that it “did not identify a single piece of evidence to back up one argument.”

With changes like these coming more and more frequently, it can be exhausting trying to stay ahead of the game. Check out our Free Resource Library and blog for updated information. Or, better yet, let our team do the work for you! Contact us today for a quote.

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