It's Your Business: Use Care When Defining Independent Contractors

Mason Alexander was quoted in The Charlotte Observer on July 29, 2015. The article “It’s Your Business: Use Care When Defining Independent Contractors” discussed a 15-page memo issued by the Wage and Hour Division that’s meant to help companies better determine when they may legally classify workers as independent contractors.

Mason was quoted on how the implications of that decision can be huge – and fraught with legal consequences.

Mason said business owners should exercise caution before classifying workers as independent contractors.

“Really, an independent contractor is an independent business,” he said. “If the model fits, it’s fine, and it’s a good idea. The problem is, people assume that they can agree that someone is going to be an independent contractor, and you can’t. You’ve got to have the right facts.”

Alexander said employers that get it wrong are putting themselves and their businesses in jeopardy.

“My advice to small business owners would be, be very, very careful in using the independent contractor model,” he said. “It may not be the Labor Department that comes after you; it may be the IRS.”

To read the full article, please visit The Charlotte Observer.