If you are planning to conduct an audit of your HR function, processes and procedures be sure to include a review of how you are classifying your positions. The missclassification occurs on two fronts. The first is that of independent contractor vs. employee. The second is that of whether they are exempt or non-exempt from the labor laws. The current administration and the US Department of Labor have made it known that the missclassification of employees will be a critical area of enforcement in the coming months. To possibly hit home the necessity to do this a subsidry of FedEx was just fined by the state of Massachusetts $3,000,000 for misclassifying its drivers as Independent Contractors.
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